Ford CEO Jim Farley raises wages for young employees after learning of financial struggles
From Yahoo Finance: 2025-06-30 13:04:00
Ford CEO Jim Farley revealed at the Aspen Ideas Festival that young Ford employees were working multiple jobs, including shifts at Amazon, due to low wages. Farley drew inspiration from founder Henry Ford’s decision to raise factory wages to $5 a day in 1914, turning temporary workers into full-time employees to address the issue.
Economists credit Henry Ford for kickstarting the American middle class in the 20th century by doubling factory wages to $5 in 1914. More than 100 years later, Ford CEO Jim Farley implemented a similar strategy after learning about young employees struggling to make ends meet due to low wages and multiple jobs.
During union contract negotiations, Farley spoke with veteran employees who highlighted the financial struggles of young Ford workers. Some employees were working at Amazon before clocking into long shifts at Ford, resulting in inadequate sleep. The company converted temporary workers into full-time employees to provide better wages and benefits.
Farley emphasized the importance of investing in trade schools and skilled trades to support U.S. manufacturing productivity. Despite projections of 3.8 million new manufacturing jobs by 2033, younger workers are turning away due to low wages. Gen Z enrollment in trade schools is increasing, but many still eschew factory jobs citing low pay.
American carmakers like Ford are striving to attract young workers to manufacturing careers, but issues with wages persist. In 2023, thousands of UAW members, including Ford employees, went on strike over wages. Farley believes collaborative efforts are needed to address these challenges and improve conditions for trade workers.
Ford CEO Jim Farley called for more support in addressing the wage issues in manufacturing, emphasizing the need for collaboration to find solutions. The company’s decision to raise factory wages in 1914 was a strategic move to create a stable workforce and stimulate the purchasing power of employees to afford Ford products.