Ford, Autoworkers Show Progress After Negotiation Deadlock: Report

Negotiating teams representing the United Auto Workers and Ford Motor Co. have made progress on bargaining over wage hikes, people familiar with the negotiations told Reuters.

Ford and the UAW, which began striking against the Detroit Three automakers 20 days ago, have been "really active" in bargaining recently, Reuters reported. On Tuesday, the automaker said it made a "comprehensive" new offer to the union that included a general wage increase of more than 20%, although it did not elaborate.

Ford's latest proposal — which it called its "strongest" offer yet — would provide a series of healthcare and retirement benefits, an elimination of tiers in Ford's wage progression system and an unspecified contract ratification bonus for employees. The company's proposal — when combined with Ford's offer to return the cost-of-living adjustments that were suspended in 2009 — could bring the total wage hike offer to nearly 30%, people familiar with the situation told Reuters.

Shawn Fain, the UAW's president, is planning to update the UAW's 146,000 members employed by Ford, General Motors and Stellantis on Friday, Reuters reported. The union president has taken to Facebook Live speeches to inform UAW members, the automakers and the general public, of updates on strike negotiations; over the past two Fridays, Fain has announced additional strike actions against each of the Detroit Three.

Some 25,000 autoworkers are currently on strike against two Ford assembly complexes, two GM assembly complexes and one Stellantis assembly plant; all 38 parts distribution centers operated by GM and Stellantis are also being struck.

The UAW's strikes cost the automotive industry and customers nearly $4 billion over the first two weeks of the walkouts, according to the Anderson Economic Group's estimate. The Detroit Three fronted $1.12 billion in losses, while suppliers lost $1.29 billion, according to the East Lansing, Mich.-based company.

“Suppliers were particularly hard-hit by the UAW’s strategy of announcing specific plants to be struck just hours before they were shut down,” Patrick Anderson, the firm's chief executive, said. “The shutdown of 38 parts distribution centers also crimped dealership service operations and, of course, caused more UAW workers to lose wages.” 

All three automakers have laid off employees over the life of the strikes due to production disruptions.

General Motors has laid off more than 2,100 workers across three facilities in Indiana, Ohio and Kansas, and idled its Fairfax Assembly Plant. Late last month, Stellantis laid off 68 employees at its Toledo Machining Plant in Perrysburg, Ohio, and said it may furlough more than 350 employees in Kokomo, Ind.

On Wednesday, Ford announced it would furlough 400 employees at two Michigan facilities in addition to the 930 other employees already laid off.

"Our production system is highly interconnected, which means the UAW’s targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage," Dan Barbossa, a Ford spokesperson, told The Messenger in a statement.

Industry suppliers have also been forced to lay off workers. Some 30% of auto parts makers surveyed by the Motor Equipment Manufacturers Association have laid off workers and another 60% expect more layoffs by mid-October if the walkouts continue.

As the strikes have progressed, automakers have been forced to prepare for a test of endurance and take out lines of credit. On Wednesday, GM filed for a $6 billion line of credit, while Ford set up a $4 billion line of credit in August.