Ford Motor Co.’s Executive Chairman, Bill Ford, has urged autoworkers to unite in order to avert an ongoing month-long strike which he warned could impede the company’s future investments.
During a unique speech delivered amid take place negotiations in Dearborn, Michigan, home to the company’s headquarters, Ford emphasized the impact of escalating labour costs on the ability to invest in the development of innovative vehicles and upgrading of production plants.
“Our business truly depends on this,” he claimed. “Should we lose out, we’ll fall behind our competitors, America will suffer a loss, and many jobs will be forfeited,” expressed the direct descendant of the iconic Henry Ford.
Ford stated that the company constructs more cars in America and employs a greater number of United Auto Workers than any other organization, inevitably escalating its operations costs in an extremely competitive market.
Ford currently employs 57,000 UAW workers, outnumbering both GM’s 46,000 and Stellantis’ 43,000. “While numerous rivals have transferred jobs to Mexico, we have amplified jobs here on American soil,” emphasized Ford.
Negotiations with the UAW union appear to be at a deadlock, as illustrated by the targeted strikes across all of Detroit’s carmakers initiated on September 15th. Unexpectedly, last week 8,700 union members initiated their strike at the globally renowned Kentucky Truck Plant, one of Ford’s most profitable ventures.
Ford expressed concern for the subsequent impact on tens of thousands of Americans working in parts supply and dealership roles. He warned of the impending collapse of a presently unstable parts supplier base, leading to significant blows to both local communities and the American economy, should the strikes persist.
Driven by his experience of watching other nations losing their auto industries, leading subsequently to a complete disintegration of manufacturing bases, Ford stated his belief in the vitality of a robust American manufacturing sector for national security.
Affirming his faith in a shared bright future, he urged an end to the ongoing contentious negotiations, indicating his continued belief in the automobile industry playing a pivotal role in America’s benevolence.
Yet, only last week, a senior Ford executive expressed that the company had reached its limit regarding what it could spend to conclude the strike, indicating a tough road ahead.
Bill Ford was accused by UAW President Shawn Fain of being able to end the strike by directing the CEO, Jim Farley, “to cease games and finalise a deal.” Fain perceived the fight as one between autoworkers worldwide and corporate greed, not just merely between UAW and Ford.
While few workers responded to Ford’s plea, Steve Applebee, who has been with Ford for 31 years, expressed his comprehension of both sides. However, he raised his concern over Ford compensating CEO Farley with US$21 million per year while factory worker pay hovers just around US$3 per hour creating a stark discrepancy.
Carlos Hollins, a newcomer, recalled perfect adherence to their end of the promise to forfeit their raises during the 2008 financial crisis, expecting Ford to now live up to its commitment of restoring those concessions.
As the auto industry navigates a critical shift from internal combustion engines to electric vehicles, this turbidity further complicates matters.
In essence, Ford and labor union’s widening rift suggests a prolonged strike that could hemorrhage billions from both the company and its workers. As of now, approximately 34,000 of the union’s 146,000 employees across the three automakers are on strike. Striking a balance between corporate interests and worker rights therefore seems to be the crux of the next steps for both Ford and the UAW.
