Members of the United Auto Employees union picket outside the Michigan Assembly Plant in Wayne, Michigan, on Sept. 26, 2023.
Matthew Hatcher | AFP | Getty Images
DETROIT — The United Auto Employees union is holding up negotiations with Ford Motor over future electric vehicle battery plants, Ford CEO Jim Farley said during a press briefing Friday.
“I think we could have reached a compromise on pay and advantages, but thus far the UAW is holding the deal hostage over battery plants,” he said after the UAW announced it could expand strikes to 2 additional assembly plants — one each for Ford and General Motors.
Farley criticized the union for its targeted strike strategy, saying he feels the actions were “premeditated” and insinuating the union was never focused on reaching a deal before a Sept. 14 deadline.
“We have now felt from the very starting, between all of the lines of our comments, that the unique strike was premeditated and that all the things is taking way too long,” he said. “That actual events are predetermined before they occur. It has been very frustrating.”
Farley’s public criticism of the union is uncharacteristic for Ford, which is historically viewed as essentially the most union-friendly company of the Detroit automakers.
Farley said the corporate is not “at an impasse” with the union but warned that day “could come if this continues.”
GM CEO Mary Barra echoed much of Farley’s criticisms of Fain and the UAW’s strike strategy.
“It’s clear that there is no such thing as a real intent to get to an agreement,” she said in an emailed statement Friday night. “It is obvious Shawn Fain desires to make history for himself, but it could’t be to the detriment of our represented team members and the industry.”
UAW President Shawn Fain fired back at Farley, saying the CEO hasn’t been present on the bargaining table and that he’s “lying concerning the state of negotiations.”
“It may very well be because he failed to indicate up for bargaining this week, as he has for a lot of the past ten weeks. If he were there, he’d know we gave Ford a comprehensive proposal on Monday and still have not heard back,” Fain said in a press release Friday afternoon. “He would also know that we’re far apart on core economic proposals like retirement security and post-retirement healthcare, in addition to job security on this EV transition, which Farley himself says goes to chop 40 percent of our members’ jobs.”
Multibillion-dollar EV battery plants — and their 1000’s of expected staff — are crucial to the automotive industry’s future and uniquely positioned to have wide-ranging implications for the UAW, automakers and President Joe Biden’s push toward domestic manufacturing.
Current and former union leaders previously told CNBC that the battery plants can have to be a priority for the labor organization, no matter whether or not they’re directly discussed within the national agreement, for the long-term viability of the union.
Nonetheless, they’re considered a “wild card” issue within the contract negotiations. Lots of the battery plants which have been announced cannot legally be included in the present talks, as they’re three way partnership facilities.
United Auto Employees President Shawn Fain addresses picketing UAW members at a General Motors Service Parts Operations plant in Belleville, Michigan, on Sept. 26, 2023, as U.S. President Joe Biden joined the employees.
Jim Watson | Afp | Getty Images
Ford has announced 4 future battery plants, including three joint ventures and an entirely owned subsidiary using battery technology licensed from Chinese auto supplier CATL. Ford earlier this week paused construction on the latter plant in Marshall, Michigan, as a consequence of the union negotiations, Farley said.
“We will make Marshall rather a lot greater or rather a lot smaller,” Farley said Friday.
GM is the one Detroit automaker with a three way partnership battery plant in operation and unionized — making it the primary within the country to face this particular negotiating dynamic and a landmark plant to set standards for the industry.
Farley noted that a number of the battery production won’t even be covered under the timeline of the deals which are currently being negotiated. He also defended the corporate’s prior offers, which include greater than 20% hourly wage growth, reinstatement of cost-of-living adjustments, job protections and other advantages.
“If the UAW’s goal is a record contract, they’ve already achieved this,” Farley said. “It’s grossly irresponsible to escalate these strikes and hurt 1000’s of families.”
