Ford Motor has announced that it’s unable to sweeten its contract proposal to the United Automobile Workers union.
The Detroit major said, doing so would jeopardize its business and its capacity to invest in electric vehicles.
The automaker also cautioned that the union’s decision to expand the strike to Ford’s largest facility, the Kentucky Truck Plant, could negatively impact workers at other factories.
Read More: UAW Launches Strike At Ford’s Largest Plant In Kentucky
It could lead to layoffs across the auto industry.
Kumar Galhotra, president of the Ford division responsible for combustion engine vehicles said, “We are very clear.”
“We are at the limit. Any more will stretch our ability to invest in the business.”
The UAW is negotiating new labor agreements with Ford, General Motors, and Stellantis (the parent of Chrysler and Jeep).
The union’s members have staged strikes at specific plants and parts warehouses owned by these automakers.
Read More: UAW Strikes At Volvo’s Mack Trucks Unit Over Contract Rejection
The negotiations between the UAW and Ford halted on Wednesday, October 11.
It prompted the union to call for the 8,700 UAW members at the Kentucky Truck Plant to strike.
UAW President Shawn Fain said: “If the companies are not going to come to the table and take care of the membership’s needs, then we will react.”
The Kentucky Truck Plant in Louisville ceased production on Wednesday evening.
This facility manufactures the Super Duty versions of Ford’s F-Series pickup trucks, along with the Ford Expedition and Lincoln Navigator full-size SUVs.
Read More: Stellantis Lays Off Over 500 Workers In Michigan
On a typical day, a new vehicle rolls off its assembly line every 37 seconds.
This plant independently contributes approximately 16 percent of Ford’s revenue.
If it experiences prolonged idling, it will likely cause stoppages and layoffs at as many as 13 other Ford plants engaged in engine, transmission, and axle production.
Mr. Galhotra said factories belonging to the 600 suppliers providing components to Ford may also be compelled to lay off workers.
He said: “This goes way beyond just hitting Ford’s profits.”
Looking to boost your online brand? Create your FREE business profile at WhatBiz? here.
The UAW is pushing for a substantial pay raise, a cost-of-living provision, an expanded retirement plan, and improved retiree healthcare benefits.
The union also seeks job security as automakers transition to electric vehicle production.
As well as wanting to eliminate the practice where new hires begin at slightly over half the top UAW wage of $32 per hour.
Need Career Advice? Get employment skills advice at all levels of your career
Ford has proposed a 23 percent pay increase over four years and wage adjustments in response to inflation.
The automaker also offered a reduction in the time it takes for new hires to reach the top wage, from eight years to four.
When the UAW entered a negotiation session on Wednesday, they expected a more favorable proposal from Ford.
However, Mr. Galhotra said Ford was only prepared to discuss amendments to its existing proposal, not to create an entirely new one. This quickly lead to a breakdown in the negotiations and the start of strike action.
