The United Auto Workers (UAW) union has intensified its strike against Detroit’s Big Three automakers, causing the shutdown of Ford’s largest factory and putting Jeep maker Stellantis at risk.
In a surprising move on Wednesday night, 8,700 members walked off their jobs at Ford’s Kentucky truck plant in Louisville.
On Thursday morning, UAW President Shawn Fain hinted at further action against Stellantis. “Here’s to hoping talks at Stellantis today are more productive than Ford yesterday,” Fain wrote on X, formerly Twitter, without revealing the details of the potential action.
Ford’s truck plant is responsible for manufacturing heavy-duty F-Series pickup trucks and large Ford and Lincoln SUVs, which are the company’s most profitable products. These vehicles generate $25 billion in annual revenue, according to Ford’s statement.
Fain expressed his frustration in a statement, stating that the union has been waiting for a fair contract but Ford has not understood the message. He explained, “If they can’t understand that after four weeks, the 8,700 workers shutting down this extremely profitable plant will help them understand it.”
This strike comes nearly four weeks after the union initiated walkouts against General Motors, Ford, and Stellantis on September 15, targeting one assembly plant from each company.
However, Ford criticized the expansion of the strike as “grossly irresponsible” and claimed to have made strong wage and benefit offers to the union. The company stated that the move puts about a dozen other Ford facilities and numerous parts supply plants, employing over 100,000 people, at risk.
Anthony Spencer, a long-time employee at the truck plant, expressed confidence that the surprise walkout would have a significant impact on Ford. He said, “We know it’s going to hit them. We lose millions of dollars every day that we don’t run.” Spencer, who serves as the local union’s recording secretary and helped organize the walkout, labeled this moment as historic, emphasizing that the local hasn’t been on strike since 1976.
Several issues with negotiations led to the strike, including the unionization of Ford’s electric-vehicle workers and employee raises. Spencer highlighted the concerns related to job security for workers in the transition to electric vehicles, stating, “We all know if we ever go EV, we’re going to lose a lot of members that build engines, transmissions, and they got to have a place to go.”
A Ford executive reported that the union called a meeting at Ford’s headquarters, where Fain inquired about another offer. High-ranking executives responded that they are exploring the possibility of bringing electric vehicle battery plants into the UAW national contract, making them unionized. However, no significantly different economic offer was made. Fain responded by saying, “You just lost Kentucky Truck Plant.”
In a video statement, Fain expressed disappointment with Ford’s lack of change in its offer and stated that the company has not met expectations or come to the table on the issues.
Marick Masters, a business professor at Wayne State University, suggested that the union is increasing pressure on Ford, but automakers have already made concessions and raised wage offers. He believes that the strikes may not end quickly given the complexity of the remaining issues, including union demands for defined benefit pensions and health insurance for retired workers.
The UAW expanded the strikes on September 22, adding 38 GM and Stellantis parts warehouses. Ford and GM assembly plants were added the following week. With the Kentucky strike, approximately 33,700 workers are now on strike against the three automakers.
Instead of having all 146,000 UAW members go on strike simultaneously, the union has chosen to target a select number of plants from each company.
Last week, the union reported progress in the negotiations and decided not to add any more plants to the strike. This decision came after GM agreed to include joint-venture electric vehicle battery factories in the national master contract, guaranteeing their unionization.
Battery plants have been a major point of contention in the negotiations as the UAW wants to ensure jobs and competitive wages for workers in the shift towards electric vehicles.
Since the start of the strike, the three automakers have laid off around 4,800 workers at unaffected factories.
Striking workers receive $500 per week from the union’s strike pay fund, and some may also qualify for state unemployment aid. However, separate companies that supply parts to the automakers may have also laid off workers without public announcement.
A recent survey conducted by MEMA Original Equipment Suppliers found that 30% of its members have laid off workers, and over 60% anticipate layoffs in mid-October.
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