United Auto Workers Threatens Strike at Ford’s Kentucky Truck Plant Over Local Contract Issues
The United Auto Workers (UAW) has issued a threat to strike at Ford Motor Co.’s Kentucky Truck Plant if local contract issues are not resolved. The UAW is demanding that the issues with UAW Local 862 be addressed before the strike deadline of February 23. The Kentucky Truck Plant is Ford’s largest and most profitable plant, producing popular vehicles such as Ford Super Duty pickup trucks, Ford Expedition full-size SUVs, and Lincoln Navigator SUVs.
This threat comes shortly after Ford CEO Jim Farley hinted at the possibility of reevaluating the company’s U.S. operations following the strike at the Kentucky plant last fall. The strike lasted 41 days and cost Ford $1.7 billion in profit. The plant generates approximately $25 billion per year, accounting for a significant portion of Ford’s global revenues.
The contract deadline with Local 862 has already passed by more than five months, according to the union. The key issues being discussed include health and safety concerns, such as minimum in-plant nurse staffing levels and ergonomic issues, as well as skilled trades staffing. UAW Vice President Chuck Browning has requested authorization from UAW President Shawn Fain to set the strike deadline.
Ford spokesperson Jessica Enoch stated that negotiations are ongoing, and the company hopes to reach an agreement with UAW Local 862 at the Kentucky Truck Plant. It is important to note that unions have the right to strike over local contracts, even if a national contract is already in place. While these types of work stoppages are not as common as they once were, they still occur. In 2022, members of UAW Local 1166 went on strike over their local agreement at Stellantis NV’s casting plant in Kokomo, Indiana.
During a recent conference, Farley expressed that Ford’s relationship with the UAW has changed since the strike last fall. He acknowledged that the company’s reliance on the union was tested when the Kentucky plant was shut down. Farley emphasized that the change in their relationship could have business implications, leading Ford to reconsider its manufacturing footprint.
However, Local 862 President Todd Dunn dismissed Farley’s comments, stating that they do not affect the union’s decision to potentially strike. Dunn acknowledged that the threat of a walkout is rare but emphasized that he is prepared to execute the plan if necessary. He highlighted the solidarity demonstrated by members during the previous strike and expressed uncertainty about what would change their minds.
Marick Masters, a management professor at Wayne State University, commented on the UAW’s approach to negotiations under the Fain administration. He noted that the union is taking a more audacious and ambitious stance, willing to strike if necessary. The UAW aims to represent the interests of workers at both the company-wide and local levels.
In 2023, UAW members ratified contracts with the Detroit Three automakers, securing significant wage increases, cost-of-living adjustments, improved pension and retirement contributions, and the right to strike over plant closures. Ford reported a net income of $4.3 billion on $176.2 billion in revenue in 2023. To offset increased labor costs and expenses related to product refreshes, the company plans to implement a $2 billion cost-cutting effort in manufacturing this year.
The UAW has gained bargaining power through its successful negotiations, prompting non-union automakers to improve wages, reduce wage progression timelines, and enhance benefits for their workers. The union has also launched a campaign to expand its membership by organizing foreign and electric vehicle startup plants.
The UAW’s threat of a strike at Ford’s Kentucky Truck Plant highlights their commitment to advocating for workers’ interests at both the national and local levels. As negotiations continue, it remains to be seen whether an agreement can be reached before the strike deadline. The outcome of these discussions will have significant implications for both Ford and the UAW, as well as the broader automotive industry.