Ford’s executive chairman, Bill Ford, implores the United Auto Workers union to conclude the 32-day strike, citing adverse consequences on the automaker and the U.S. economy.
An Appeal for Resolution
Ford called for an end to the strike, emphasising the growing repercussions on the company and the American economy. The labour strike, which recently forced the closure of the Kentucky plant, prompted Ford to make this plea during a press conference at the Rouge assembly plant, near the firm’s headquarters in Dearborn, Michigan.
Union’s Response
UAW President Shawn Fain responded by issuing a warning that the union could “close the Rouge” through a strike. He added, “If Ford wants to be the all-American auto company, they can pay all-American wages and benefits.” Over 34,000 union members at Ford, General Motors (GM), and Stellantis are on strike, while Ford has furloughed an additional 2,480 employees, citing the strike’s consequences.
Ongoing Talks
Concurrently, discussions between Stellantis and the UAW remained active on Monday, according to sources. A new report from the Anderson Economic Group estimated that the strikes have collectively cost the Detroit Three automakers, suppliers, dealers, and workers approximately USD 7.7 billion through October 12. The group declared, “We’ve entered the danger zone for many suppliers.”
Impact on Suppliers
Ford argued that other automakers like Toyota, Honda, and Tesla are benefiting from the strike’s extended duration, to which Fain responded that non-union U.S. auto producers are not the enemy but the UAW members of the future.
Kentucky Strike Consequences
The UAW’s strike at Kentucky Truck, Ford’s most substantial and profitable assembly operation globally, is significantly affecting American workers and the nation’s economy, as stated by Ford. The automaker warned that its continued duration would have a substantial impact on the American economy.
Demand for Higher Compensation
Previously, Fain accused Ford of attempting to manipulate the talks with inadequate offers and demanded a significant increase in compensation. Fain urged Ford CEO Jim Farley to open the “big checkbook” that the company uses for executives or Wall Street benefits. Fain also pledged to strike at additional plants when necessary.
Wage Proposals
A senior Ford executive previously noted that the automaker had reached the limit of what it could offer for higher wages and benefits for the UAW. Ford’s latest proposal includes a 23% wage increase through early 2028, exceeding what GM or Stellantis have offered. Ford explained that the UAW’s propositions would have led to bankruptcy if implemented in 2019.
Seeking Unity
Bill Ford reiterated his family’s company as the most union-friendly in the industry and expressed that it should be Ford and the UAW working together against external competitors like Toyota, Honda, Tesla, and Chinese companies entering the U.S. market.