Finance

Why Ford's CEO is Changing the Game for Young Workers

2025-06-30

Author: Ming

In a bold move echoing the visionary spirit of Henry Ford, CEO Jim Farley is shaking up the automotive giant's workplace culture. After speaking candidly with veteran employees, Farley realized that young workers are struggling to make ends meet, often juggling multiple jobs just to survive.

During a recent dialogue at the Aspen Ideas Festival with noted journalist Walter Isaacson, Farley recounted a stark revelation from older workers: "None of the young people want to work here. You pay $17 an hour, and they are overwhelmed by stress.” This honesty laid the groundwork for crucial changes at Ford.

Farley discovered that young employees are so pressed for time that they take on shifts at Amazon before clocking in for their grueling seven-hour workdays at Ford, barely scraping by on just a few hours of sleep. In response, the company is transforming temporary roles into full-time positions, allowing these workers access to better wages, profit-sharing, and improved healthcare.

This refreshing approach, outlined during the 2019 contract talks with the United Auto Workers (UAW), allows temps to transition to full-time status after just two years. Farley admitted, "It wasn’t easy to do, and it was expensive, but it’s the kind of bold change we need.”

A Legacy of Progressive Wage Policies

Farley’s approach has historical roots; Henry Ford himself doubled factory wages back in 1914—not out of charity, but as a strategic move to ensure his workers could afford the very cars they produced. "He believed in creating a self-sustaining workforce," Farley explained. This age-old philosophy is now more relevant than ever in attracting young talent.

A Generational Shift Away from Manufacturing

Despite projections that the U.S. will create 3.8 million new manufacturing jobs by 2033, younger generations are retreating from factory work. A recent Soter Analytics study highlighted that while Gen Z interest in trade schools is rising, many avoid manufacturing jobs due to low wages, which average around $25 per hour—well below the national average of $66,600.

Ford’s efforts to reshape perceptions about manufacturing careers seem ambitious, yet the company still faces criticism regarding employee wages. After a vast strike in 2023 involving 16,600 Ford employees pushing for higher pay, Farley described the conflict as "completely unnecessary" from the management perspective, but he acknowledges that elevating wages is a collective responsibility.

A Call for Investment in Trade Skills

Farley advocates for substantial investments in trade schools and skilled labor training, pointing to successful models in countries like Germany, where apprenticeships begin as early as junior high. He asserts, "Every job in manufacturing has a trained individual behind it for eight years. We need that same dedication here in the U.S."

While Ford is making strides, Farley insists the responsibility to improve the landscape for trade workers doesn't rest solely on the company’s shoulders. "We’re not just going to hope it gets better. We have the resources and know-how, but we need collaboration from others to solve these critical issues." The future of Ford—and its workers—depends on it.