Ford Motor Co. Executive Chairman Bill Ford urged autoworkers to unite and put an end to the ongoing strike, emphasizing that its continuation could hinder the company’s ability to invest in its future.
In a rare speech during contract negotiations in Dearborn, Michigan, Ford expressed concerns about high labor costs and their potential impact on the company’s ability to make strategic investments. He warned that losing the strike would put Ford at a competitive disadvantage, result in job losses, and have negative consequences for America as a whole. Bill Ford, the great-grandson of founder Henry Ford, highlighted the fact that Ford manufactures more vehicles in the United States and employs more United Auto Workers (UAW) members than any other company. He called for an end to the acrimonious strike.
The United Auto Workers union is currently at an impasse with the company, as targeted strikes have taken place at all three Detroit automakers since September 15th (source). The largest and most profitable Ford plant in the world, the Kentucky Truck Plant in Louisville, experienced a walkout by 8,700 union members last week. An executive from Ford stated that the company had reached its spending limit to resolve the strike.
Bill Ford’s speech is particularly significant as the entire auto industry undergoes a historic and costly transition from internal combustion engines to electric vehicles.
UAW President Shawn Fain has emphasized that Ford, along with General Motors and Stellantis, is making billions in profits, and workers deserve a fair share. He argues that workers made sacrifices during the Great Recession, such as forgoing general pay raises, cost of living adjustments, and accepting lower wage tiers to ensure the companies’ survival. The strike began after the UAW’s contracts with the companies expired and has escalated to include 38 parts warehouses at GM and Stellantis, as well as additional assembly plants at GM and Ford.
Recently, Fain announced a surprise walkout at the Kentucky plant, which produces Super Duty pickups and large Ford and Lincoln SUVs (source). Approximately 34,000 of the UAW’s 146,000 employees across all three automakers are currently on strike.
Kumar Galhotra, president of Ford Blue, the company’s internal combustion engine business, expressed that Ford had made a significant offer but is now at its limit. The widening labor dispute suggests that Ford and the union may be facing a protracted strike, resulting in substantial financial losses for both the company and its workers.
Fain stated that Ford had promised to present a counteroffer on economic issues but failed to do so, leading to the decision to walk out. Galhotra, however, described Ford’s offer as “incredibly positive” and explained that the company had indicated it would not increase the offer. Despite the current situation, Galhotra remains hopeful that a mutually beneficial agreement can still be reached.
The union has disclosed that Ford’s general wage offer is up to 23% over four years, with cost of living raises reinstated. General Motors and Stellantis previously offered 20%, but Fain asserts that none of the offers are sufficient (
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