Ford Announces Additional Layoffs Amidst Ongoing UAW Strikes
Workers represented by the United Auto Workers (UAW) have been striking against the Big Three automakers – Ford, General Motors (GM), and Stellantis – for over a month now. As the strikes continue, supply chain disruptions have caused a series of layoffs in the industry. Ford has recently announced another round of layoffs, affecting a total of 364 workers across two states.
According to reports from the Detroit Free Press, Ford will lay off 354 workers at its Sharonville, Ohio Transmission Plant and 10 employees at its Rawsonville Components Plant in Ypsilanti, Michigan. The reduction in parts demand, resulting from the ongoing strikes, has prompted Ford to reduce part production at these plants, which typically supply components to the automaker’s Kentucky Truck Plant. This comes after the UAW targeted the Kentucky factory earlier this month, leading to a walkout of approximately 9,000 workers. The Sharonville and Rawsonville plants have already faced layoffs, with a total of 660 and 45 workers being affected, respectively.
Ford spokesperson Dan Barbossa explained, “Our production system is highly interconnected, which means the UAW’s targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage.”
The strikes have had ripple effects throughout the industry, with GM and Ford initiating layoffs of about 500 workers across four production facilities earlier this month. Additionally, GM was forced to shut down a Kansas facility employing approximately 2,000 people last month.
Amidst the strikes, Bill Ford, the Executive Chair and great-grandson of founder Henry Ford, made a public call to end contract negotiations earlier this week.
Currently, more than 34,000 members of the UAW are striking against the Big Three automakers. The UAW represents nearly 150,000 workers across the three companies, and further strikes may occur if substantial progress is not made on contracts. Despite recent progress on contract offers, UAW President Shawn Fain warned of possible walkouts.
The automakers have agreed to a 23% wage increase over the four-year contract period. However, Fain stated that “there is more to be won” and highlighted that GM and Ford’s offers have also included increased cost-of-living adjustments (COLA), resulting in overall compensation increases of over 30%. Fain urged union members to continue their fight and not give in to fear and uncertainty. He added, “We’re striking the Big Three like we’ve never struck before. These extremely profitable companies have more to give.”
However, Fain acknowledged that negotiations were nearing their end, as some members urged the union to vote on current offers. While Fain encouraged members to remain united, he expressed the union’s eagerness to conclude the negotiations.
The ongoing strikes have created significant challenges for the automakers, causing supply chain disruptions and subsequent layoffs. As the situation unfolds, the UAW continues to leverage its bargaining power to secure better contract terms for its members.
Sources: Detroit Free Press, Reuters