The United Auto Workers union significantly escalated its strikes against Detroit’s Three automakers Wednesday when 8,700 workers walked off their jobs at Ford’s Kentucky truck plant.
The surprise move about 6:30 p.m. took down the largest and most profitable Ford plant in the world. The sprawling factory makes pricey heavy-duty F-Series pickup trucks and large Ford and Lincoln SUVs.
UAW President Shawn Fain said in a statement that the union has waited long enough “but Ford hasn’t gotten the message” to bargain for a fair contract.
“If they can’t understand that after four weeks, the 8,700 workers shutting down this extremely profitable plant will help them understand it,” Fain said.
The strike came nearly four weeks after the union began its walkouts against General Motors, Ford and Jeep maker Stellantis on Sept. 15, with one assembly plant from each company.
In a statement, Ford called the strike expansion “grossly irresponsible” but said it wasn’t surprising given the UAW leadership’s statements that it wanted to keep Detroit automakers hobbled with “industrial chaos.”
A Ford executive said the union set up a meeting at the company’s Dearborn, Michigan, headquarters Wednesday afternoon where Fain asked if the company had another offer.
High-ranking Ford executives responded that they are working on possibly bringing electric vehicle battery plants into the UAW national contract, essentially making them unionized. But they didn’t have a significantly different economic offer, the executive said. Fain was told the company put a strong offer on the table, but there wasn’t a lot of room to increase it and keep it affordable for the business, the executive said.
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Fain responded by saying, if that’s the company’s best offer, “You just lost the Kentucky Truck Plant,” said the executive.
Ford said in its statement that the strike at the huge Kentucky plant “carries serious consequences for our workforce, suppliers, dealers and commercial customers.”
The union had been adding facilities to the strike nearly every Friday, so Wednesday’s announcement was a surprise.
Last week the UAW didn’t add any plants after GM agreed to make its electric vehicle battery plants union, a key UAW objective. Fain said on Friday that the union has seen significant progress in talks with all three companies. Ford’s general wage offer, for instance, is up to 23% over four years, after starting at 9%. GM and Stellantis, he said, are at 20%. None of the raises is big enough but they’re further along, he said.
The UAW expanded its strikes on Sept. 22, adding 38 GM and Stellantis parts warehouses. Assembly plants from Ford and GM were added the week after that. With the Kentucky plant, all told, about 33,700 workers have walked off their jobs at the three automakers.
Thus far, the union has decided to target a small number of plants from each company rather than have all 146,000 UAW members at the automakers go on strike at the same time.
Battery plants are a major point of contention in the negotiations. The UAW wants those plants to be unionized to assure jobs and top wages for workers who will be displaced by the industry’s ongoing transition to electric vehicles.
Since the start of the strike, the three Detroit automakers have laid off roughly 4,800 workers at factories that are not among the plants that have been hit by the UAW strikes.
The companies say the strikes have forced them to impose those layoffs. They note that the job cuts have occurred mainly at factories that make parts for assembly plants that were closed by strikes. In one case, layoffs have been imposed at a factory that uses supplies from a parts factory on strike.
The UAW rejects that argument. It contends that the layoffs are unjustified and were imposed as part of the companies’ pressure campaign to persuade UAW members to accept less favorable terms in negotiations with automakers. The factories that have been affected by layoffs are in six states: Michigan, Ohio, Illinois, Kansas, Indiana and New York.
Sam Fiorani, an analyst with AutoForecast Solutions, a consulting firm, said he thinks the layoffs reflect a simple reality: The automakers are losing money because of the strikes. By slowing or idling factories that are running below their capacities because of strike-related parts shortages, Fiorani said, the companies can mitigate further losses.
“It doesn’t make sense to keep running at 30% or 40% of capacity when it normally runs at 100%,” he said. “We’re not looking at huge numbers of workers relative to the ones actually being struck. But there is fallout.”
In a statement, Bryce Currie, vice president of Americas manufacturing at Ford, said: “While we are doing what we can to avoid layoffs, we have no choice but to reduce production of parts that would be destined for a plant that is on strike.”
Striking workers are receiving $500 a week from the union’s strike pay fund. By contrast, anyone who is laid off would qualify for state unemployment aid, which, depending on a variety of circumstances, could be less or more than $500 a week.
“Their plan won’t work,” Fain said. “The UAW will make sure any worker laid off in the Big Three’s latest attack will not go without an income.”
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