The collective bargaining dispute in the US auto industry is coming to a head: Since last Thursday, the United Auto Workers (UAW) union has been on strike at its largest factory ford in the USAto increase the pressure in the conflict with US car manufacturers. They react promptly: the Chrysler parent company Stellantis and Ford now want to lay off a further 1,250 employees due to the effects of the strike, the companies announced on Friday evening (local time).
Ford announced plans to lay off 550 workers at its plant in Louisville, Kentucky, and its assembly plant in Chicago. According to its own information, Stellantis had laid off another 700 employees in Indiana on Friday, meaning that a total of 1,340 employees from plants in three states had already been kicked out.
The UAW expanded its strikes against major US automakers on Friday and called on 7,000 more workers to stop work in Illinois and Michigan. The union wants to ensure that the companies submit better offers.
Ford has already laid off 2,480 workers since the strike began four weeks ago. At the third major car manufacturer in the region, General Motors there were 2,300 layoffs. Currently, more than 34,000 UAW members of the “Detroit Three,” as the automakers are known, are on strike.
In addition to the Super Duty pickups, the large SUVs Lincoln Navigator and Ford Expedition are also produced at the Louisville plant. The business with these cars is considered “extremely profitable” and is therefore likely to hit Ford even more severely. The plant in Kentucky is the auto company’s largest plant and, according to the company, generates annual sales of $25 billion. This represents one sixth of Ford’s global revenue.
The UAW has around 150,000 members and, according to recent statements, is demanding a 30 percent wage supplement for employees. Originally the demand was 40 percent – the income of the top management of the large car companies had grown by this amount, the UAW justified its demand at the time. Before the strike began, the car manufacturers were prepared to pay raises of up to 20 percent – over a period of four and a half years.