Ford says ‘significant gaps’ remain in UAW strike negotiations

Ford was spared by the United Auto Workers (UAW) on Friday from actions that widened strike activity at its two peers in Detroit’s Big Three automakers but has indicated that significant gaps remain between the two sides in key areas despite progress on certain issues.

The UAW broadened its strike against General Motors and Stellantis – the parent company of brands like Chrysler, Dodge, Jeep and Ram – on Friday with the announcement of new strikes at 38 parts distribution centers across 20 states. 

The move affected about 5,600 union workers from GM and Stellantis, bringing the total number of UAW members on strike to roughly 18,300 across the Big Three. The ongoing strike has caused work stoppages at facilities where union members aren’t on strike, resulting in temporary layoffs due to the lack of work.

"Negotiations continue. Ford is working diligently with the UAW to reach a deal that rewards our workforce and enables Ford to invest in a vibrant and growing future," the company said in a statement. "Although we are making progress in some areas, we still have significant gaps to close on the key economic issues. In the end, the issues are interconnected and must work within an overall agreement that supports our mutual success."

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UAW President Shawn Fain on Friday cited "real progress" in the union’s negotiations with Ford but emphasized that, "We have more work ahead of us before we can reach an agreement."

He said the UAW has secured concessions on several issues such as the reinstatement of a cost-of-living allowance, conversion of all current temps who’ve worked for Ford for at least 90 days upon ratification of the new contract, plus an enhanced profit-sharing formula that would’ve paid out an increased 13.3% to employees last year. 

UAW STRIKE HAS ALREADY COST THE US ECONOMY $1.6B

The UAW also said it secured the right to strike over plant closures by Ford in the future. It added that its members would also receive additional income security with up to two years of health care in the event of an indefinite layoff.

One area where the two sides appear to be relatively far apart based on public statements is pay raises. The UAW initially asked for a 40% raise for members over the life of the new four-and-a-half-year contract, while Ford and the other automakers have offered a 20% raise over that period with an immediate 10% raise upon ratification of the contract. The union is also pushing for 32-hour work weeks, the return of defined benefit pensions and the elimination of wage gaps between newer and older employees.

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UAW leaders are running what the union calls a "stand up strike," in which specific locals are asked to go on strike at their facilities. The union has said that strategy will give it flexibility in escalating the strike incrementally up to a potential nationwide strike if negotiations do not deliver sufficient progress in its view, and will make it harder for the auto companies to predict its next move. 

This is the first time that the UAW has conducted a simultaneous strike against each of Detroit’s Big Three automakers.

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President Biden is planning to travel to Michigan on Tuesday to visit a UAW picket line in support of the workers. Former President Donald Trump is also planning a trip to Michigan on Wednesday.

Reuters contributed to this report.