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 – Ford Motor is “at the limit” of what it can offer the United Auto Workers union in terms of economic concessions, an executive said Thursday as contract negotiations continue for roughly 57,000 U.S. workers.
Kumar Galhotra, president of the company’s traditional operations, stated during a media and analyst call that Ford is willing to rearrange its existing offer to align with the union’s priorities. However, he mentioned that any additional costs would hinder the automaker’s future operations and investments in emerging sectors like electric vehicles.
“We’ve made it clear that we have reached our limit. We have already gone above and beyond,” said Galhotra. “Pushing further would have a negative impact on our ability to invest in the necessary areas of our business.”
Galhotra declined to disclose the exact cost of Ford’s current offer to the union.
These comments come on the heels of an unexpected strike launched by the union at Ford’s highly profitable SUV and pickup truck plant in Kentucky.
“We were taken aback by last night’s escalation,” said Galhotra. “The Kentucky Truck Plant is one of the most critical manufacturing facilities in America.”
UAW President Shawn Fain explained that the strike escalation was a result of the company reoffering its previous proposal without providing any additional economic benefits.
“This offer was identical to the one they presented two weeks ago. They are not taking us seriously,” said Fain during a pre-recorded online video. “We have been patient during this process, but the company has not met our expectations. They are not willing to negotiate.”
Ford’s most recent proposal includes wage increases ranging from 23% to 26% based on job classification, retention of platinum health care benefits, bonuses upon ratification, reinstatement of cost-of-living adjustments, and other benefits.
In recent days, Ford has been negotiating unresolved issues such as retiree benefits and potential opportunities for future battery plant workers, following guidance from the union.
Electric vehicle battery plants have been a contentious topic in the negotiations between the union and all three major Detroit automakers. Ford, General Motors, and Stellantis have all established joint ventures with battery manufacturers to produce EV batteries in the United States. Due to these joint ventures, the battery plants are not covered by the automakers’ agreements with the union.
The union views these joint-venture arrangements as an attempt to exclude them from these new factories, many of which are currently under construction. However, the UAW announced last Friday that GM had agreed to include the workers at these battery plants under its national agreement with the union, suggesting that it expects Ford and Stellantis to do the same.
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