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Why Ford Just Gave Many of Its Employees a $19,000 Raise

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Ford is planning to hike the pay of 300 to 500 entry-level workers by more than $19,000 a year as the automaker enjoys the recent strength of the U.S. auto industry.

The pay raise comes as Ford adds 1,550 jobs through March to support the production of Ford’s 2015 aluminum-body F-150 automotive, and as automotive sales continue to grow, The Detroit News reports. Those new jobs will push Ford over the number of second-tier hourly workers it is allowed under its contract with the United Autoworkers, requiring the company to raise the 300-500 workers’ wages from about $19 an hour to $28 an hour.

The employees getting wage hikes are the most senior second-tier workers at Ford’s manufacturing facilities in Kansas City, Chicago and Louisville.

Ford is booming as the auto industry roars back from the recession. The company has added more than 15,000 hourly UAW members since 2011, exceeding its goal of creating 12,000 hourly jobs in the United States by 2015.

[The Detroit News]


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