Ford Motor Co.’s executive chairman, William C. Ford Jr., said a month-long strike by the United Auto Workers (UAW) could harm the U.S. auto industry’s ability to compete with non-union foreign rivals. expressed concern. Ford emphasized that this battle should not be seen as the UAW against U.S. automakers, but rather as Ford and the UAW against foreign competitors such as Toyota, Honda, Tesla, and Chinese companies seeking to enter the domestic market. He argued that the longer the strike lasts, the better it will be for non-union automakers.
The strike is reminiscent of a time several years ago when the UAW won lucrative contracts that ultimately weakened Michigan automakers in the face of competition from Japanese and European automakers. Ford’s statement alluded to the difficulties faced by Ford, General Motors (GM) and Stellantis (formerly Chrysler) after the 2008 financial crisis. He emphasized that Ford’s ability to invest in its future is critical, and losing it would mean job losses and a loss to competition.
In response, UAW President Sean Fein called on Ford to meet the union’s demands and threatened to “shut down Rouge” if he didn’t. Fein emphasized that the union is not fighting the company, but rather “corporate greed.” The UAW has been negotiating new labor contracts with Ford, GM and Stellantis since July. Strikes were called in several factories, resulting in multiple facility shutdowns. The UAW is demanding higher wages, shorter working hours, expanded pensions and an end to a system that pays new employees less than experienced workers.
Ford executives have offered unions a record amount of money, but they argue any further concessions would hamper the company’s ability to invest in electric vehicles and innovative technology. Ford, who has been involved in negotiations with the UAW since 1982, said negotiations were at a critical stage and warned that a costly collective agreement could impact the U.S. economy. He urged both sides to come to an agreement and come together to fight real competition.
Definition:
– United Automobile Workers (UAW): A labor union representing workers in the U.S. auto industry.
– Rouge Plant: Ford’s manufacturing facility in Dearborn, Michigan, where the Ford F-150 pickup truck is produced.
– Stellantis: An automobile company created through the merger of Fiat Chrysler Automobiles and French car manufacturer Groupe PSA.
source:
– New York Times (URL removed)
– Ford Motor (URL removed)