The US automotive strike has reached a deadlock! The unexpected new round of strikes by the union has led Ford to claim that they have reached their limit.
A senior executive at Ford Motor Company stated that the company has reached its limit in terms of concessions offered to the United Auto Workers (UAW) in the recent negotiations. Yesterday, the union unexpectedly launched a new round of strikes against Ford, affecting the company's profitable SUV and pickup truck factories.
On Thursday, Kumar Galhotra, the President of Ford's traditional business, stated that the company has reached its limit in terms of the generous concessions it has offered to the United Auto Workers (UAW) in the economic package. "We are very clear that we have reached our limit. We have done our best to get to this point," Galhotra said.
Galhotra stated that Ford is willing to make adjustments within the existing offer range to meet the union's priorities, but any additional cost increase would harm Ford's future operational capabilities and its ability to invest in emerging areas such as electric vehicles.
Galhotra refused to disclose how much the proposals currently being presented to the union would cost the company.
Yesterday, the union launched an unexpected new round of strikes against Ford. Workers at Ford's truck factory in Kentucky joined the strike, which produces profitable SUVs and pickups. The UAW stated that Ford has refused to take further action in wage negotiations and has only maintained its previous wage proposal.
According to reports, Ford's recent proposals include a 23%-26% wage increase based on job types, retaining platinum health insurance benefits, approving bonuses, reinstating cost-of-living allowances, and other benefits. Ford stated that over the past few days, the company has been negotiating on retirement benefits for employees and potential choices for future battery plant workers based on the guidance of the union.
Last week, Shawn Fain, the President of the United Auto Workers, revealed that Ford's latest offer includes a 23% pay increase, higher than General Motors and Stellantis' 20%. The union hopes to receive at least a 30% pay increase after the strike, which is lower than their initial demand of 40%. Informed sources revealed that Ford's proposal, when considering cost-of-living allowances taking into account inflation, is likely to reach this level.
On Wednesday, Ford stated that the UAW's encouragement of the strike at the Kentucky truck factory was extremely irresponsible. The strike decision made by the union organization has serious consequences. The factory shutdown will cause painful repercussions. In addition, about 12 other operating departments and suppliers of Ford also face the risk of supply shortages or shutdowns caused by the strike. However, Ford also stated that the company's labor contract negotiations with the union have not broken down.
Galhotra stated on Thursday that the company was surprised by the escalation of the situation on Wednesday evening (local time). The Kentucky truck factory is one of the most important manufacturing plants in the United States.
The strike that began on September 15 is the first time that the Detroit Three automakers have simultaneously become targets of strikes. Since the start of the strike, the UAW has continued to increase pressure on automakers. Negotiations revolve around wages, pensions, and future battery plant workers. Currently, each car manufacturer is negotiating separately with the UAW on its own four-and-a-half-year contract, but they are closely monitoring the actions of other car manufacturers.