Ford and UAW Clash Amid Escalating Auto Strike Costs: Bill Ford, the executive chairman of Ford (F.N.), begged the United Auto Workers (UAW) union to end their 32-day strike and warned that the carmaker and the U.S. economy as a whole would suffer more and more.
Ford made a loud call for an end to the strike right away, which had just caused the Kentucky plant to close. This call could be heard all over the Rouge assembly plant. At a news gathering at the historic Rouge assembly plant, which is close to Ford’s main office in Dearborn, Michigan, he made a strong case for working together.
As soon as the news came out, UAW President Shawn Fain put out a statement that seemed to imply that the union might go on strike and shut down the Rouge plant. Fain stressed that Ford needs to offer pay and perks that are fair for an all-American workforce if it wants to be the best example of an American automaker.
When you look at the strike as a whole, it’s affected almost 34,000 union members at Ford, GM or Stellantis. Because of the strike’s effects, Ford had to lay off 2,480 workers. On this particular Monday, talks between Stellantis and the UAW went on at the same time.
The Anderson Economic Group found that the strikes cost the Detroit Three, their dealers, wholesalers, and workers a huge $7.7 billion. The company AEG said, “We’ve entered the danger zone for many suppliers.”
Bill Ford, who is the great-grandson of Henry Ford, says that rival companies like Toyota, Honda, Tesla, and others are taking advantage of the strike’s extension to make money.
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Shawn Fain doesn’t agree with this. He says that the real threat is coming from future UAW members, not workers at Tesla or other American companies that aren’t unionized.
The Kentucky Truck plant, which is Ford’s largest manufacturing plant in the world and the center of this labor unrest, is currently closed, which will affect the jobs of tens of thousands of American workers. Ford says there are major effects that could happen and that a long strike could hurt the US economy.
Fain says that Ford isn’t making good offers despite claims of negotiating tactics and begs the CEO, Jim Farley, to find money in the budget for big pay. Fain also says he will draw any new plants that come to mind.
A top Ford executive said that the company can’t afford to offer better pay and perks anymore. Ford’s most recent offer includes a 23% pay raise through early 2028. This is more than what GM and Stellantis have recommended. Ford says that the UAW’s plans would have led to bankruptcy in 2019.
But the UAW sees Ford as an enemy because he is working with other companies to stop Chinese competitors like Toyota, Honda, and Tesla from entering the American car market. Ford says that his company is the most union-friendly in the sector.
Harley Shaiken, a professor of labor at the University of California, Berkeley, sees Ford’s appeal as both an attempt to directly involve workers and a planned attempt to change the conversation. Despite this, Shaiken is negative and says, “This is probably not going to work.”
During this time of workplace unrest, the UAW seems to be going after and putting pressure on Ford on purpose. They may be doing this in the hopes that a settlement with Ford will make it easier to reach deals with GM and Stellantis. The continued silence of GM and Stellantis stands out in this growing drama like the opening notes of a symphony that haven’t played their last notes yet.
Our Reader’s Queries
How much did the UAW cost Ford?
Ford has estimated that the cost of its labor deal with the United Auto Workers (UAW) will be around $8.8 billion. As a result, the company has lowered its full-year profit outlook. This news comes after the UAW reached a tentative agreement with Ford earlier this month, which includes wage increases and bonuses for workers. Despite the cost, Ford remains committed to investing in its workforce and ensuring that its employees are fairly compensated for their hard work.
How much is the strike costing Ford?
The recent six-week United Auto Workers strike at Ford had a significant impact on the company’s sales, resulting in a loss of approximately 100,000 vehicles for the year. This unfortunate event also caused the automaker to suffer a loss of $1.7 billion in profits, as reported by the company in November.
What was the conflict between General Motors and the UAW?
The United Auto Workers have voted to approve a contract with General Motors, marking the end of a lengthy labor dispute that saw thousands of autoworkers take to the picket lines. This decision makes General Motors the first of the Big 3 U.S. carmakers to formally conclude the dispute, which had the potential to cause significant economic disruption. The balloting results were posted online by the organization.
How much did the UAW cost?
Ford and General Motors have both announced the expected costs of the new UAW labor agreement. Ford predicts a cost of $8.8 billion over the contract’s lifespan, which ends in April 2028. Meanwhile, General Motors has reported a slightly higher impact of $9.3 billion over the same period.