The United Auto Workers union escalated their strike against Detroit’s motor-vehicle ‘big three’, casting a shadow over Ford’s biggest factory and promising to up the ante on Jeep manufacturer, Stellantis.
Wednesday night saw 8,700 workers abandon their posts at Ford’s Kentucky truck plant in Louisville, an unanticipated move.
Thursday morning presented an ominous forecast from the Union President, Shawn Fain, who suggested the possibility of further strikes. Fain did not convey the specifics of this veiled threat, but encouraged productive discussion at Stellantis.
The Louisville plant produces heavy-duty F-Series pick-up trucks along with sizeable Ford and Lincoln SUVs, which are Ford’s most profitable products. In terms of yearly revenue, production at this factory brings in a cool US$25 billion.
Fain implied Ford’s refusal to negotiate for a fair contract had gone on long enough. He suggested that the halt in operations at their lucrative plant, caused by the mass walk-out, might focus their attention.
This display of solidarity amongst the workers emerged after four weeks of strikes against General Motors, Ford, and Stellantis, which began on September 15th.
Ford responded negatively to this escalation, calling it highly irresponsible. The company claims the strikes jeopardize around a dozen other Ford facilities alongside parts supply plants, collectively employing over 100,000 individuals.
Ford, though expressing disappointment in negotiations, relayed the prospect of including electric vehicle battery plants in the UAW national contract, effectively unionizing them. However, there was not a significantly different economic proposition on offer from the company, forcing Fain to intensify strike action.
Professor Marick Masters, a labor expert at Wayne State University, believes Fain is using the Ford confrontation as leverage and is testing the limits to which he can push the firm. Nonetheless, Masters suggested Ford and other auto manufacturers might be reaching their breaking point, attempting to maintain a competitive stance within the industry.
The extended period strikes and escalating intensity do not instill optimism for a speedy resolution, according to Masters, especially with the union adamant in its demands for workers to receive health insurance and defined benefit pensions upon retirement.
Started on September 22, the UAW strikes now include 33,700 workers from the Detroit ‘big three’. The strikes, however, remain targeted to specific plants, sparing the entire 146,000 UAW workforce from simultaneous disruption.
While layoffs resulting from strike impact reach close to 4,800 workers, the UAW disputes companies’ reasoning, claiming this measure forms part of the companies’ strategy to force UAW member concessions in negotiation.
Striking workers receive US$500 per week from a union strike fund, with laid-off workers eligible for state unemployment aid in some instances. As strike action widens, the expectation is eventual layoffs at all non-striking plants.
Separate entities manufacturing parts for the automakers may already have implemented layoffs, though they may not disclose the information publicly, warned Patrick Anderson, CEO of the Anderson Economic Group in Lansing, Michigan. A survey suggests 30 per cent of members have made layoffs with over 60 per cent planning to stage layoffs by mid-October.
