UAW auto strike hits Ford's biggest and most profitable plant
The UAW expanded its strike against the Big Three automakers, with 8,700 more workers participating. This led to the closure of Ford's highly profitable Kentucky Truck Plant, the company's largest and most profitable auto facility. UAW President Shawn Fain expressed that the union has been patient, but it's time for a fair contract at Ford and the other major automakers.
Ford accused of refusing to negotiate further
In a sharp escalation of the ongoing four-week-long strike, the UAW closed the Kentucky Plant around 6:30pm Wednesday (4:00am IST Thursday). The union stated that Ford was unwilling to progress further in contract negotiations. Ford responded to the shutdown by labeling the UAW's decision as "grossly irresponsible" and accusing union leadership of causing "reputational damage" and "industrial chaos."
Impact on Ford's production and revenue
The closure of the plant is anticipated to significantly impact Ford's production and revenue. The facility is crucial for manufacturing some of Ford's most popular and profitable vehicles, such as Ford Super Duty pickup trucks, Ford Expedition, and Lincoln Navigator SUVs. It's unclear how long the plant will remain closed and what effect this will have on Ford's financial performance. The Kentucky truck plant generates roughly $25 billion in yearly revenue, making up nearly one-sixth of Ford's total revenue.
What is the UAW strike for?
The UAW's major demands consist of a 46% pay raise and a 4-day work week with overtime pay kicking in after 32 hours. Autoworkers also say their pay has stagnated even as the profits of the Big Three car companies—Ford, General Motors, Stellantis—and the compensation of their executives, have increased. Fain stressed that the union is fighting for a fair contract not only for Ford workers but also for those employed by the other two Big Three automakers.
