The United Auto Workers (UAW) is ramping up pressure on Ford Motor Co. as negotiations at the Kentucky Truck Plant reach a boiling point. The threat of a strike looms large if local contract issues are not resolved by February 23, with UAW local 862 focusing on crucial health and safety concerns such as nurse staffing levels and skilled trades staffing.
The Kentucky Truck Plant is Ford’s largest and most profitable plant, producing popular vehicles like the Ford Super Duty pickup trucks, Ford Expedition SUVs, and Lincoln Navigator SUVs. Last year, a strike at the same plant cost the automaker $1.7 billion in profit during a 41-day standoff with the union.
Ford CEO Jim Farley hinted at the possibility of reevaluating the company’s U.S. footprint following the union’s decision to strike last fall. The automaker is now looking to cut costs in manufacturing to counterbalance rising labor expenses after reporting a $4.3 billion net income in 2023.
The UAW has been on a winning streak, securing record contracts with major automakers like Ford, resulting in a significant 27% compounded wage increase through 2028. With newfound bargaining power, the union aims to expand its reach to foreign and electric vehicle startup plants to represent workers at the local level.
Union leader Todd Dunn is prepared to execute a strike if necessary, emphasizing that while it’s happened before, it is still a rare occurrence. Management expert Marick Masters noted that the UAW is taking a more aggressive stance in negotiations under the current administration, signaling a potentially tumultuous road ahead for Ford and its workers.
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