Bill Ford, executive chairman of Ford Motor Company, speaks at the Ford Motor Company Rouge Visitor Center on October 16, 2023 in Dearborn, Michigan.

Jeff Kowalski | Ford Motor Co. | Handout | Via Reuters

Dearborn, Michigan – ford motor Executive Chairman Bill Ford warned Monday that the ongoing strike by the United Auto Workers threatens the company and the future livelihoods of the U.S. auto industry.

Ford, which has been involved in UAW negotiations since 1982, implored union members and leaders to work with the company, not against it, to reach a tentative agreement to “bring an end to these tough negotiations.” .

Such comments by the great-grandson of company founder Henry Ford are unusual during contract negotiations with the UAW.

“We’re at a crossroads,” Mr. Ford said at a news conference at the company’s massive Rouge complex in metro Detroit. “Choosing the right path isn’t just about the future of Ford and our competitiveness. It’s about the future of America’s auto industry.”

Before speaking on stage, Mr. Ford told reporters that he wanted to “spark” the conversation about contract negotiations. Ford said he did not want to get personal in his remarks because “it’s not important” at this time.

“UAW leaders are calling us the enemy in these negotiations, but I never consider our employees to be the enemy. This should not be a Ford vs. UAW situation,” Ford said. Ta. “It should be Ford and the UAW versus Toyota, Honda, Tesla and all the Chinese companies that want to come into our country.”

UAW President Sean Fein responded to Ford’s claims by ratcheting up the pressure.

“Bill Ford knows exactly how to resolve this strike. Instead of threatening to shut down Rouge, he should call Jim Farley and tell him to quit the game and make a deal. Or If not, we will close Rouge for him,” he said. said in a statement. “The UAW and Ford aren’t fighting foreign automakers. It’s autoworkers around the world who are fighting corporate greed. If Ford wants to be an all-American car company, they need to be like all-Americans. workers at Tesla, Toyota, Honda, etc.” They are not the enemy, they are future UAW members. ”

Breaking with the longstanding tradition of “handshake ceremonies” with auto executives from the Big Three automakers to begin contract negotiations, United Auto Workers Union President Sean Fein instead spoke with Stellantis employees at Stellantis Corporation. We held a “member handshake.” Sterling Heights Assembly Plant, Sterling Heights, Michigan, July 12, 2023. The UAW will begin vehicle contract negotiations with Stellantis today, Ford on July 14th, and General Motors on July 18th. (Photo by Bill Pugliano/Getty Images)

Bill Priano | Getty Images News | Getty Images

Ford’s comments come after a week of contentious negotiations between the company and the UAW. That included the union unexpectedly announcing a strike Wednesday night at the company’s lucrative Kentucky trucking plant.

More than 19,000 of Ford’s 57,000 UAW members are currently affected by the strike, including more than 16,600 striking workers. Approximately 2,480 additional employees were laid off as a result of the work stoppage.

Ford said last week that it has reached the “maximum” of what it can offer the UAW in terms of economic concessions.

The company’s latest proposal included wage increases of between 23% and 26%, depending on classification. Retain Platinum Healthcare Benefits. Ratification bonus. Reinstatement of cost of living adjustments. There are advantages such as:

All told, only the company’s roughly 34,000 U.S. autoworkers, or about 23% of UAW members whose contracts with the Detroit automaker are set to expire, are currently on strike.

The UAW has ratcheted up its strikes since the work stoppage began after the two sides failed to reach a tentative agreement by Sept. 14.

Mr Fein said last week that the union would enter a “new phase” of targeted strikes and would not provide advance notice of work stoppages as in the past.

Fein said it is ultimately up to union members, not UAW leadership, to decide when the strike ends.

How have the workers reacted?

UAW member Tamika Genas (center) holds a picket sign with other auto workers, including LaTosha Smith (center), outside a Ford Michigan assembly plant on October 16, 2023. Employees at the factory have been on strike since September 15th.

Michael Weiland/CNBC

Picket lines outside Ford’s nearby Michigan assembly plant, the first of three facilities struck last month, were divided Monday over the strike and the current contract offer.

“I trust Sean Fein,” said LaTosha Smith, who has worked at the plant for four years. “Every step he takes is for a good cause.”

Tamika Genas, who has worked at the factory for about five years, said she would like to see the issue resolved, but “it’s worth it.” She later added, “We’re doing what we’re supposed to do.”

Jeff Nicol, an auto body shop worker at the plant who was laid off as a result of the strike, said he hoped both sides would “come to a conclusion sooner.” He also called on union leaders to be more transparent about the exact details of the company’s proposals.

Nicol, who has been an auto worker for more than 11 years, said he supports Ford’s current proposal, which includes a 23% wage increase, although he knows it’s an “unpopular opinion.”

UAW members Jeff Nichol and Cedric Binns (far right) picket outside the Ford Michigan assembly plant with other auto workers on October 16, 2023. Employees at the factory have been on strike since September 15th.

Michael Weiland/CNBC

“What I’m getting is more than enough, so any little extra helps, especially in the current economic climate,” he said. “I also think about how much time off you have, which also affects how much time it takes to make a difference in how much money you lose each week.”

Ford said Friday that its employees, who have been on strike since Sept. 15, have lost an average of about $4,000 in pre-tax income over the four-week strike.

Correction: Only the company’s roughly 34,000 U.S. autoworkers, or about 23% of UAW members whose contracts with the Detroit automaker are set to expire, are currently on strike.

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