Ford Motor Co. Calls for End to Month-Long Strike Over Labor Costs

In a significant address in Dearborn on Monday, Ford Motor Co. Executive Chairman Bill Ford urged autoworkers to unite in ending a month-long strike that may jeopardize the company’s ability to invest in its future.

Expressing concern over the high labor costs, Ford mentioned how these could curtail the company’s potential to innovate in the realm of new vehicles and modernize factories. “It’s the absolute lifeblood of our company. And if we lose it, we will lose to the competition. America loses. Many jobs will be lost,” Bill Ford, the great-grandson of the iconic company’s founder, Henry Ford, said, as reported by the Associated Press.

Highlighting the competitive nature of the industry and Ford’s commitment to the American workforce, Bill Ford stated that the company has the highest number of vehicles produced in America and employs more members of the United Auto Workers (UAW) than any other automaker. Specifically, Ford employs 57,000 UAW workers, surpassing GM’s 46,000 and Stellantis’s 43,000. “Many of our competitors moved jobs to Mexico as we added jobs here in the U.S.,” Ford remarked, according to AP.

However, this commitment comes amid an escalating tension with the UAW. On September 15th, the union initiated targeted strikes against all three major Detroit-based automakers. Escalating matters, last week, 8,700 union members halted work at Ford’s most lucrative plant worldwide, the Kentucky Truck Plant located in Louisville.

Emphasizing the broader ramifications of the strike, Ford commented that this move detrimentally affects several thousands involved in the supply chain and dealership sectors. According to AP, he cautioned about the potential collapse of an already delicate parts supply framework. “If it continues, it will have a major impact on the American economy and devastate local communities,” Ford voiced his concerns.

Ford, only the fourth family member to helm the 120-year-old enterprise, drew attention to the importance of a robust American manufacturing industry for national security. “We need to come together to bring an end to this acrimonious round of talks,” he expressed optimistically.

In the aftermath of the Kentucky strike, a senior Ford executive had noted the company’s firm stance on its spending limits to resolve the strike. According to AP, UAW President Shawn Fain, however, believes the resolution lies within Bill Ford’s influence over CEO Jim Farley. Fain remarked, “It’s not the UAW and Ford against foreign automakers. It’s autoworkers everywhere against corporate greed.”

Interestingly, at the Ford Michigan Assembly Plant in Wayne, workers who heard about Ford’s address had varied reactions. Steve Applebee, a 31-year veteran at Ford, comprehends the company’s position but highlights the pay disparity, noting CEO Farley’s $21 million annual compensation compared to nominal hourly wage increases for factory workers over the decades. According to the Associated Press, a new recruit Carlos Hollins emphasizes the sacrifices made by workers during tough times, stating, “We shouldn’t have to suffer. They need to pay us what we deserve.”

This discourse unfolds against the backdrop of the automobile industry’s pivotal shift to electric vehicles. While companies like Ford, General Motors, and Stellantis are reaping significant profits, UAW’s stance is that the employees should have their fair share.

The union’s strike, which began after the expiration of their contracts with automakers, has now expanded to include 34,000 of the union’s 146,000 employees at all three automakers. Given the widening divide, the labor unrest could signify a protracted strike, potentially resulting in multibillion-dollar losses for both the company and its workforce.

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