UAW Escalates Fight Against Ford, Demanding a Better Offer
The United Auto Workers (UAW) has ramped up its battle with Ford, intensifying their demands for a more favorable offer from the company. According to the UAW, Ford has presented them with the same offer as two weeks ago, prompting the organization to take further action.
As a result of this ongoing dispute, Ford has asked approximately 550 employees not to report to work starting from October 16. This decision will have a ripple effect, impacting around 2,480 employees in total due to strike layoffs. The move by Ford comes after the UAW’s recent closure of Ford’s largest and most lucrative operation, the Kentucky Truck Plant, last week.
The Kentucky Truck Plant, responsible for the production of F-Series Super Duty trucks, Ford Expeditions, and Lincoln Navigators, generates an impressive $25 billion in annual revenue. Its closure signifies the UAW’s firm commitment to inflicting pain on Detroit automakers. However, the consequences of this move will not be limited to the UAW. Bank of America estimates that the shutdown of the Kentucky facility alone could cost Ford a staggering $247 million each week in earnings before interest and taxes.
This strike against Ford is part of the UAW’s simultaneous action against other major automotive players, including General Motors (GM) and Stellantis. Since the strike began on September 15, six assembly plants and 38 parts depots have already been forced to shut down. Currently, approximately 34,000 union workers are participating in the strike, with the UAW threatening to extend their action nationwide if their demands are not met.
In terms of their demands, the UAW is asking for a notable 40% raise for its members over four-year contracts. Although Ford has offered a wage hike of 23%, which is higher than the offers from GM and Stellantis, concerns have been raised about the company being specifically targeted by the union. This is due to Ford having made greater concessions compared to its counterparts in the negotiations.
The fight between the UAW and Ford continues to escalate, with both parties holding firm in their positions. As the strike persists and its impact on Ford and the automotive industry becomes increasingly apparent, all eyes are on the negotiation table, waiting to see if a resolution will be reached or if the strike will evolve into a nationwide upheaval.
