- The United Auto Workers union is maintaining negotiations with Ford Motor over future electric vehicle battery factories, Ford CEO Jim Farley said Friday.
- “I believe we could have reached a compromise on wages and benefits, but so far the UAW is holding the deal hostage over battery factories,” Farley said.
- The UAW announced Friday that it would expand the strikes to two additional assembly plants – one each for Ford and General Motors.
Members of the United Auto Workers union demonstrate in front of the Michigan Assembly Plant in Wayne, Michigan, on September 26, 2023.
Matthew Hatcher | AFP | Getty Images
DETROIT – The United Auto Workers union is maintaining negotiations with Ford Motor over future electric vehicle battery factories, Ford CEO Jim Farley said during a news conference Friday.
“I believe we could have reached a compromise on wages and benefits, but so far the UAW is holding the deal hostage because of the battery plants,” he said Friday after the UAW announced it would expand strikes to two more assembly plants – one at each for Ford and one for Ford General Motors.
Farley criticized the union for its targeted strike strategy. He said the actions were “prepared” and suggested the union was never interested in reaching an agreement before the September 14 deadline.
Billion-dollar EV battery factories — and their expected thousands of workers — are critical to the future of the auto industry and uniquely positioned to have far-reaching impacts on the UAW, automakers and President Joe Biden’s push toward domestic manufacturing.
Current and former union leaders previously told CNBC that the battery plants must be a priority for unions, regardless of whether they are discussed directly in the nationwide agreement, for the union to have long-term viability.
However, they are considered a “wild card” issue in contract negotiations. Many of the announced battery plants cannot legally be included in the current discussions because they are joint venture plants.
Ford has announced four future battery factories, including three joint ventures and a wholly owned subsidiary using battery technology licensed from Chinese auto supplier CATL. Ford paused construction of the latter plant in Marshall, Michigan, earlier this week due to union negotiations, Farley said.
“We can make Marshall a lot bigger or a lot smaller,” Farley said Friday.
GM is the only automaker in Detroit that has an operating joint venture battery plant and is unionized. This makes GM the first in the country to embrace this unique negotiation dynamic and a groundbreaking effort that sets standards for the industry.
This is a developing story. Please check back for further updates.