UAW warns Ford (F.US): If contract issues are not resolved, River Rouge Tool and Die department will go on strike.
20/09/2024
GMT Eight
The United Auto Workers (UAW) threatens that if Ford Motor Company does not resolve local contract issues, they will strike next week at the tools and mold department at the River Rouge factory near Detroit, Michigan.
The strike deadline set by UAW is local time at 11:59 pm on September 25th, because Ford has failed to reach an agreement with factory workers over a year after the contract deadline. According to UAW officials, the River Rouge factory of Ford has around 6,000 employees, with over 500 in the tools and mold department. UAW says that the core issues in the negotiations include job security, wage equality, and work rules. Ford stated, "The company invested $15 million in this factory last year. We have been negotiating to resolve the issues. Negotiations are ongoing, and we hope to reach an agreement."
It is worth mentioning that UAW has also recently warned Stellantis that if the company does not comply with labor agreements, they will face strike action. Data shows that in order to end unprecedented strikes against the Detroit Big Three automakers, Ford, General Motors Company, and Stellantis previously agreed to the UAW's terms, including significant pay raises and increased retirement contributions. Stellantis has pledged to produce Dodge Durango in Detroit and reopen a dormant assembly plant in Belvidere, Illinois.
However, due to high inventory, declining sales, and the fact that a lucrative contract signed with UAW increased wages for auto workers by at least 25%, Stellantis is striving to cut costs, starting with company-wide layoffs and plans to transfer Durango production to Windsor, Canada, and close the Belvidere plant.
UAW's statement claims that the company failed to plan, fund, and initiate these projects, violating the American investment letter in the P&M and OC&E collective bargaining agreements. During the 2023 negotiations, both parties agreed on an investment plan for Belvidere to address job security issues affecting the entire bargaining unit. The company has failed to fulfill its commitments in the American investment letter, causing serious concerns for all bargaining unit members. UAW demands that Stellantis rescind its decision, immediately plan and fund the reopening of the Belvidere plant. Failure to do so may lead to another strike against the company.