Ford, UAW Still Have ‘Significant Gaps to Close’ in Contract Negotiations, Company Says

UAW President Shawn Fain noted on Sept. 22 that both parties have experienced ’real progress’ in talks.
Ford, UAW Still Have ‘Significant Gaps to Close’ in Contract Negotiations, Company Says
UAW President Shawn Fain and members and workers at the Mopar Parts Center Line, a Stellantis Parts Distribution Center in Center Line, Mich., picket outside the facility after walking off their jobs at noon on Sept. 22, 2023. Matthew Hatcher/AFP via Getty Images
Andrew Moran
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Ford Motor Co. and the United Auto Workers (UAW) still have “significant gaps to close” on critical economic issues before the two sides can establish a new contract, according to the Detroit automaker.

While labor negotiations persist, “the issues are interconnected and must work within an overall agreement that supports our mutual success,” the company said in a statement to The Epoch Times.

“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. Although we are making progress in some areas, we still have significant gaps to close on the key economic issues.”

UAW President Shawn Fain said on Sept. 22 that both parties have experienced “real progress” in talks.

On Sept. 22, the union omitted Ford from the organization’s strike escalation. In a live video message, Mr. Fain bolstered strike action against General Motors and Stellantis to 38 parts and distribution facilities in 28 states, sparing Ford from additional shutdowns.

“We’ve made some real progress at Ford,” Mr. Fain said. “We still have serious issues to work through, but we do want to recognize that Ford is showing that they are serious about reaching a deal. At GM and Stellantis, it’s a different story.”

Mr. Fain acknowledged that Ford has improved its contract counterproposal, such as by increasing profit sharing and agreeing to allow workers to strike over plant closures.

Current Proposals

The Big Three automakers have proposed more than 20 percent raises over a four-year period. The UAW is looking for a 40 percent pay increase, 32-hour work weeks with 40-hour pay, the restoration of traditional defined benefit pension plans, and cost-of-living adjustments. As negotiations come to a standstill, the companies have idled plants and furloughed hundreds of workers.

GM confirmed to The Epoch Times that it maintains “contingency plans for various scenarios” and is “prepared to do what is best” for the company, customers, and dealers.

Stellantis stated that it has presented “a very competitive offer” and didn’t receive a response to its proposal.

“We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” a company spokeswoman told The Epoch Times.

The White House and UAW

Mr. Fain invited President Joe Biden to join the UAW picket lines to show support for striking auto workers.
The White House accepted the invitation, and President Biden will visit Michigan on Sept. 26, one day before former President Donald Trump will hold a rally in Detroit and skip the second Republican presidential debate.

Despite that critics have asserted that President Biden is attempting to get ahead of the GOP front-runner, administration officials have said that “President Biden is doing what he has always done, which is to stand with American workers.”

“He is proud of being the most pro-union, pro-worker president, not only compared to the Trump administration, with its anti-union policies, but really compared to any modern president,” Transportation Secretary Pete Buttigieg said on CNN’s “State of the Union“ on Sept. 24.

“You’re not going to find somebody who has more consistently stood with unions.”

Other Democrats argue that President Biden is earning UAW’s endorsement.

“We have never seen in modern history a president show up to a picket line like this, and I think it should be earned, it needs to be earned, and I believe President Biden is working toward that, especially when he lands in Michigan on [Sept. 26] to earn that,” Rep. Alexandria Ocasio-Cortez (D-N.Y.) said in an interview with CBS’s “Face the Nation“ on Sept. 24.

Union Endorsements

The UAW is the only major labor union that has yet to endorse President Biden’s 2024 reelection bid.

But Mr. Fain hasn’t signaled that he would endorse former President Trump, saying that his union is “fighting the billionaire class and an economy that enriches people like Donald Trump at the expense of our workers.”

Former President Trump has encouraged the union to endorse him while also criticizing the leadership, warning that if he doesn’t win next year, “the autoworkers are toast.” He has also slammed the administration’s electric vehicle policies and President Biden’s decision to visit Michigan.

“Crooked Joe Biden had no intention of going to visit the United Autoworkers, until I announced that I would be heading to Michigan to be with them,” he wrote in a Sept. 23 Truth Social post.
According to a new ABC News–Washington Post poll, former President Trump is leading President Biden by 9 points.
Andrew Moran
Andrew Moran
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Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."
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