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Ford CEO says UAW is ‘holding the deal hostage’ over EV battery plants

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Members of the United Auto Employees union picket outdoors the Michigan Meeting Plant in Wayne, Michigan, on Sept. 26, 2023.
Matthew Hatcher | AFP | Getty Photographs

DETROIT – The United Auto Employees union is holding up negotiations with Ford Motor over future electrical car battery crops, Ford CEO Jim Farley stated throughout a press briefing Friday.

“I imagine we might have reached a compromise on pay and advantages however to date the UAW is holding the deal hostage over battery crops,” he stated Friday after the UAW introduced it might broaden strikes to 2 extra meeting crops — one every for Ford and Normal Motors.

Farley criticized the union for its focused strike technique, saying he feels the actions had been “premediated” and insinuating the union was by no means fascinated about reaching a deal earlier than a Sept. 14 deadline.

Multibillion-dollar EV battery crops — and their hundreds of anticipated employees — are essential to the automotive business’s future and uniquely positioned to have wide-ranging implications for the UAW, automakers and President Joe Biden’s push towards home manufacturing.

Present and former union leaders beforehand instructed CNBC that the battery crops should be a precedence for the labor group, no matter whether or not they’re instantly mentioned within the nationwide settlement, for the long-term viability of the union.

Nevertheless, they’re thought of a “wild card” challenge within the contract negotiations. Lots of the battery crops which were introduced can’t legally be included within the present talks, as they’re three way partnership amenities.

Ford has introduced 4 future battery crops, together with three joint ventures and an entirely owned subsidiary utilizing battery know-how licensed from Chinese language auto provider CATL. Ford earlier this week paused building on the latter plant in Marshall, Michigan, because of the union negotiations, Farley stated.

“We will make Marshall so much larger or so much smaller,” Farley stated Friday.

GM is the one Detroit automaker with a three way partnership battery plant in operation and unionized – making it the primary within the nation to face this specific negotiating dynamic and a landmark plant to set requirements for the business.

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