In an unexpected turn of events, Ford CEO Jim Farley has openly criticized the United Auto Workers (UAW) union for impeding negotiations related to future electric vehicle (EV) battery plants. Farley’s comments came during a press briefing on Friday, where he expressed his frustration over the prolonged discussions.
Farley revealed, “I believe we could have reached a compromise on pay and benefits, but so far the UAW is holding the deal hostage over battery plants.” This statement followed the UAW’s announcement that it would extend strikes to two additional assembly plants, one belonging to Ford and the other to General Motors.
The Ford CEO took issue with the union’s approach, characterizing it as premeditated and implying that the UAW was not genuinely interested in reaching an agreement before the September 14th deadline. He stated, “We have felt from the very beginning, between all the lines of our comments, that the original strike was premeditated and that everything is taking way too long. That actual events are predetermined before they happen. It’s been very frustrating.”
Ford’s public criticism of the UAW is a notable departure from the company’s reputation as the most union-friendly among Detroit automakers. While Farley emphasized that the company is not at an impasse with the union, he cautioned that such a scenario could arise if the situation persists.
GM CEO Mary Barra echoed many of Farley’s criticisms regarding UAW President Shawn Fain’s approach to the negotiations. Barra stated, “It’s clear that there is no real intent to get to an agreement. It is clear Shawn Fain wants to make history for himself, but it can’t be to the detriment of our represented team members and the industry.”
In response to Farley’s allegations, UAW President Shawn Fain refuted the CEO’s claims, stating that Farley has not been present at the bargaining table and accused him of misrepresenting the state of negotiations. Fain explained, “It could be because he failed to show up for bargaining this week, as he has for most of the past ten weeks. If he were there, he’d know we gave Ford a comprehensive proposal on Monday and still haven’t heard back.”
The negotiations concerning multibillion-dollar EV battery plants hold immense significance for the automotive industry’s future. They are also closely tied to President Joe Biden’s initiative to promote domestic manufacturing. Despite their importance, these battery plants are considered a “wild card” issue in the contract negotiations, as many of them are joint venture facilities and cannot be directly included in the current talks.
Ford has already announced plans for four future battery plants, including three joint ventures and a wholly owned subsidiary. The company recently paused construction on one of these plants in Michigan due to ongoing union negotiations.
Jim Farley emphasized that some of the battery production falls outside the timeline covered by the current negotiations. He defended Ford’s previous offers, which included over 20% hourly wage growth, the reinstatement of cost-of-living adjustments, job protections, and other benefits.
Farley concluded, “If the UAW’s goal is a record contract, they have already achieved this. It is grossly irresponsible to escalate these strikes and hurt thousands of families.”
The negotiations surrounding EV battery plants are pivotal not only for the automakers and the UAW but also for the future of the U.S. automotive industry and its workforce.
