US Markets
Friday, February 16th, 2024 7:14 pm EDT
Key Points
- The United Auto Workers threatens a labor strike at Ford Motor’s largest U.S. plant, the Kentucky Truck Plant, if local union demands are not met by next week. Nearly 9,000 UAW autoworkers could strike on Feb. 23 if local contract issues persist, affecting production of Ford Super Duty pickups, Expeditions, and Lincoln Navigator SUVs.
- Local contracts, distinct from national agreements ratified in late 2023 with Ford, GM, and Stellantis, address plant-specific concerns and can remain unresolved for extended periods. Core issues in the Kentucky Truck Plant’s negotiations involve health and safety, including nurse staffing levels and ergonomic concerns, alongside alleged attempts by Ford to diminish skilled trades at the facility.
- The strike deadline follows UAW President Shawn Fain’s criticism of Ford CEO Jim Farley’s remarks about future manufacturing locations and the company’s approach to labor. Farley’s comments, made during an investor conference, prompted Fain to question Ford’s commitment to American workers and advocate for a CEO interested in the future of the country’s auto industry.
The United Auto Workers (UAW) is poised to strike at Ford Motor’s largest U.S. plant, the Kentucky Truck Plant, if local union demands remain unresolved by next week. Nearly 9,000 UAW autoworkers could walk off the job at 12:01 a.m. on February 23 if issues related to local contracts persist. Local contracts address plant-specific matters and can often linger unresolved for months or even years after national agreements are ratified. The core concerns in the local negotiations at the Kentucky Truck Plant revolve around health and safety issues, including staffing levels for in-plant nurses, ergonomic concerns, and Ford’s alleged attempts to diminish skilled trades at the facility.
Although the reason for setting the strike deadline specifically at the Ford plant is unclear, there are 19 other open local agreements across Ford, as well as several open local agreements at General Motors (GM) and Stellantis. Ford, known for its historically strong relationship with the UAW, has yet to comment on the union’s announcement. This strike deadline follows UAW President Shawn Fain’s criticism of Ford CEO Jim Farley for remarks suggesting that the company will carefully consider its future manufacturing locations amidst evolving market conditions and tense negotiations with the union in 2023, which included targeted strikes lasting six weeks.
Farley’s comments regarding the company’s strategic considerations during an investor conference prompted a sharp response from Fain, who urged Ford to prioritize American workers and questioned the CEO’s commitment to the future of the U.S. auto industry. The dispute between the UAW and Ford underscores the shifting dynamics within the automotive sector, particularly amid the transition to electric vehicles (EVs) and ongoing discussions about labor practices and manufacturing footprints.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/16/uaw-threatens-to-strike-ford-kentucky-truck-plant-over-local-demands.html
