DETROIT (AP) — Ford Motor Co. Executive Chairman Bill Ford is scheduled to make a rare speech Monday about the future of American manufacturing with the company near an impasse with striking autoworkers.
The speech near the company's huge pickup truck plant in Ford's hometown of Dearborn, Michigan, is expected to address the monthlong strike by members of the United Auto Workers union.
Last week 8,700 union members walked out at the largest and most profitable Ford plant in the world, the Kentucky Truck Plant in Louisville.
After the walkout, a top company executive said on a conference call with reporters that Ford had reached the limit in how much it was willing to spend to end the strike.
Ford announced the speech with a short advisory early on Monday.
Bill Ford is likely to appeal to workers about how the company can't afford to saddle itself with high labor costs and still be competitive with Tesla and other nonunion automakers with U.S. factories.
The speech comes as the industry is amidst a historic and expensive shift from internal combustion engines to electric vehicles.
UAW President Shawn Fain has said Ford and crosstown rivals General Motors and Jeep maker Stellantis are making billions and workers should get a share. He says the workers should be repaid for sacrificing general pay raises, cost of living adjustments and agreeing to lower wage tiers to keep the companies afloat during the Great Recession.
The union began striking at targeted factories on Sept. 15, after its contracts with the companies expired. It started with one assembly plant from each company and later spread to 38 parts warehouses at GM and Jeep maker Stellantis. The UAW later added another assembly plant at GM and Ford.
Last Wednesday Fain made the surprise announcement that the union would walk out at the Kentucky plant, which makes Super Duty pickups and large Ford and Lincoln SUVs.
About 34,000 of the union's 146,000 employees at all three automakers are now on strike.
Kumar Galhotra, president of Ford Blue, the company’s internal combustion engine business, told reporters Thursday that Ford stretched to get to the offer it now has on the table.
The apparently widening labor rift indicates that Ford and the union may be in for a lengthy strike that could cost the company and workers billions of dollars.
Fain said on Wednesday that Ford told UAW bargainers for nearly two weeks that it would make another counteroffer on economic issues. But at a meeting called by the union, the company didn’t increase its previous offer, Fain said. “Ford hasn’t gotten the message” to bargain for a fair contract, Fain said in announcing the walkout by 8,700 workers at the company’s Kentucky Truck Plant in Louisville.
“We’ve been very patient working with the company on this,” he said in a video. “They have not met expectations, they’re not even coming to the table on it.”
Galhotra called Ford’s offer “incredibly positive” and said Ford never indicated to the union that it would be increased.
“We have been very clear we are at the limit,” he said on a conference call with reporters. “We risk the ability to invest in the business and profitably grow. And profitable growth is in the best interest of everybody at Ford.”
The company has a set amount of money, but is willing to move dollars around in a way that might fit the union’s needs, he said, adding that he still thinks it’s possible to reach a deal.
The union has said Ford’s general wage offer is up to 23% over four years and that it has reinstated cost of living raises. GM and Stellantis were at 20%. But Fain said none was high enough.
