Ce que vous devez retenir
- According to Jim Farley in a recent Fortune magazine interview, it was the veteran employees who first raised the alarm about the situation facing their younger colleagues.
- In January 1914, Henry Ford made a revolutionary move by doubling the average daily wage for his workforce to five dollars for an eight-hour workday.
- Jim Farley acknowledged that changing the company’s hiring policies “wasn’t easy” and admitted that “it was expensive, but I think this is the kind of change we need in our country.
Young workers at Ford manufacturing plants were working 15-hour days across two jobs just to make ends meet. The situation has now improved thanks to CEO Jim Farley taking inspiration from a strategy first implemented by Henry Ford over a century ago.
The challenging reality for young Ford workers
The automotive industry in Western countries has faced mounting pressure in recent years, partly due to the emergence of Chinese car brands in these markets. This has forced companies like Ford to rethink their approach to worker compensation and retention.
It might seem surprising that employment at a multinational corporation like Ford Motor Company could be financially challenging. After all, this is one of the oldest and most respected manufacturers in the industry, selling vehicles worldwide. Yet the reality for many younger factory workers in the company’s home country was far from ideal.
According to Jim Farley in a recent Fortune magazine interview, it was the veteran employees who first raised the alarm about the situation facing their younger colleagues. Amid economic pressures, the low wages offered to this segment of the workforce forced many to take on second jobs just to cover basic expenses.
Working double shifts between Amazon and Ford
As Farley explained, many younger workers were taking eight-hour shifts at Amazon before starting their seven-hour workday at Ford factories. This brutal schedule left them with only three to four hours to sleep—a situation that the CEO found unacceptable once he became aware of it.
“The veteran workers were saying, ‘No young person wants to work here. Jim, you’re paying $17 an hour and they’re really stressed out,'” Farley recounted during the interview.
This feedback from long-time employees reflected a broader shift in how American society views automotive factory jobs. Unlike in the past, when these positions were considered gateways to the middle class, they’re now often seen as underpaid opportunities that many young people actively avoid.
Following Henry Ford’s revolutionary playbook
To address this situation, Farley drew inspiration from something the company’s founder had done over 110 years ago. In January 1914, Henry Ford made a revolutionary move by doubling the average daily wage for his workforce to five dollars for an eight-hour workday.
This historic decision not only allowed Ford’s temporary workers to become permanent employees but also helped establish what would become America’s middle class.
As Farley explained, Henry Ford’s original motivation was to improve his workers’ financial situation: “I’m doing this because I want my factory worker to buy my cars. If they make enough, they’ll buy my products,” the current CEO quoted the founder.
From temporary to permanent in two years
Jim Farley acknowledged that changing the company’s hiring policies “wasn’t easy” and admitted that “it was expensive, but I think this is the kind of change we need in our country.”
Farley and his management team reached an agreement with young workers that will transition them from temporary contracts to permanent positions after two consecutive years with the company. This provision is part of the agreement reached in 2019 with the United Auto Workers (UAW) union.
Access to permanent work contracts provides not only stability for young employees but also brings improved salary conditions, benefits in profit-sharing, and better healthcare coverage.
“Our governments need to take investment in vocational schools and skilled trades very seriously,” the Ford CEO stated firmly, noting that in Germany, “they have an apprentice from high school. Each of those positions has someone behind it who receives training for eight years.”
(The auto industry’s approach to workforce development continues to evolve as manufacturers face new competitive pressures—something worth watching as electric vehicles transform production requirements.)
