Members of the United Auto Workers union picket outside the Michigan Assembly Plant in Wayne, Michigan, on Sept. 26, 2023.
Matthew Hatcher | AFP | Getty Images
DETROIT — The United Auto Workers (UAW) union is currently stalling negotiations with Ford Motor over the establishment of future electric vehicle (EV) battery plants, Ford CEO Jim Farley revealed during a press briefing on Friday.
“Although we could have potentially reached an agreement on pay and benefits, the UAW is currently delaying the deal due to their insistence on including battery plants,” stated Farley after the UAW took the strike action to two additional assembly plants, one each for Ford and General Motors.
Farley critically commented on the UAW’s targeted strike approach, alleging that the union’s actions were “premeditated” and that the union had never intended to reach an agreement before the September 14 deadline.
“Right from the beginning, we sensed that the initial strike was premeditated and that everything was taking far too long,” he expressed. “It’s as if the future events are predetermined. It has been incredibly frustrating.”
For Ford, criticizing the union publicly is an unusual move since the company is typically regarded as the most union-friendly among Detroit’s automakers.
Farley clarified that the company is not currently “at an impasse” with the union but warned that they may reach one if the current situation persists.
GM CEO Mary Barra echoed many of Farley’s concerns regarding Fain and the UAW’s strike strategy.
“It is evident that there is no genuine intention to achieve an agreement,” she stated in a Friday night email. “Shawn Fain wants to make his mark in history, but not at the expense of our unionized team members and the industry.”
In response to Farley’s comments, UAW President Shawn Fain criticized the CEO, alleging that he has not actively participated in the bargaining process and that he is “misrepresenting the state of negotiations.”
“Perhaps this is due to his absence from the bargaining table this week, as has been the case for most of the past ten weeks. Had he been present, he would realize that we presented Ford with a comprehensive proposal on Monday and have yet to receive a response,” Fain explained in a statement on Friday afternoon. “Furthermore, he would understand that we are still far apart on fundamental economic issues such as retirement security, post-retirement healthcare, and job security during the EV transition, which Farley himself predicted would lead to a 40% reduction in our members’ jobs.”
The construction of multibillion-dollar EV battery plants, which are expected to employ thousands of workers, is of utmost importance to the automotive industry’s future. These plants also have significant implications for the UAW, automakers, and President Joe Biden’s agenda to promote domestic manufacturing.
According to current and former union leaders, the battery plants must be a top priority for the labor organization, regardless of whether they are directly addressed in the national agreement, in order to ensure the union’s long-term viability.
However, the inclusion of battery plants in the contract negotiations is considered a “wild card” issue since many of the announced plants are joint ventures and cannot be legally incorporated into the current talks.
United Auto Workers President Shawn Fain addresses picketing UAW members at a General Motors Service Parts Operations plant in Belleville, Michigan, on Sept. 26, 2023, as U.S. President Joe Biden joined the workers.
Jim Watson | Afp | Getty Images
Ford has announced plans for four future battery plants, including three joint ventures and a wholly owned subsidiary utilizing battery technology licensed from Chinese auto supplier CATL. Farley mentioned that construction on the subsidiary plant in Marshall, Michigan has been temporarily halted due to the union negotiations.
“We have the flexibility to significantly expand or reduce the size of the Marshall plant,” Farley stated on Friday.
GM is currently the only automaker in Detroit that operates a unionized joint venture battery plant, making it the first to confront this unique negotiation dynamic and setting industry standards in the process.
Farley emphasized that some of the battery production discussed may not even fall within the timeline covered by the ongoing negotiations. He also defended Ford’s previous offers, which include over 20% wage growth, the reinstatement of cost-of-living adjustments, job protections, and other benefits.
“If the UAW’s goal is to achieve a record-breaking contract, they have already accomplished that,” Farley argued. “It is highly irresponsible to escalate these strikes and harm thousands of families.”
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