Ford will bump 55 entry-level UAW employees to a top-tier wage by as early as next week, The Detroit Free Press reports. The automaker has exceeded the maximum amount employees it can pay an entry-level wage to and will now be forced to increase certain workers’ pay as per their UAW contract.
Certain workers hired in 2011 will receive a wage bump of up to $9 by as early as next week. Ford was allowed 14,308 employees with an entry-level wage as of January 18, and had 14,239 on the payroll. Just a week prior, Ford had 14,168 entry-level workers, figures which suggest it has likely exceeded the cap by now.
Ford has hired 14,000 workers since it last negotiated its union contract in 2011. With vehicle sales on an uprise, there are plans to hire more, which will bump even more entry-level employees to a top-tier wage.
Earlier this week, Ford spokesperson Kristina Adamski said “the entry-level (wage) cap is a topic that will likely be discussed as part of the 2015 collective bargaining,” in resposne to comments from Fiat-Chrysler CEO Sergio Marchionne which suggested the UAW’s two-tier wage system was unstable. Kristin Dziczek of the Labor & Industry Group at the Center for Automotive Research said the two-tier wage system will be a “really big issue in labor talks this year,” as the UAW seeks to have it changed.