DETROIT – Ford Motor is “on the restrict” of what it could actually provide the United Auto Employees union by way of financial concessions, an govt mentioned Thursday as contract negotiations proceed for roughly 57,000 U.S. employees.

Kumar Galhotra, president of the corporate’s conventional operations, mentioned that whereas the corporate is prepared to shuffle cash round inside the current provide to satisfy the union’s priorities, any added prices would damage the automaker’s capacity to function sooner or later and put money into rising areas corresponding to electrical automobiles.

“We have been very clear that we’re on the restrict. We stretched to get thus far,” Galhotra mentioned Thursday throughout a media and analyst name. “Going additional will damage our capacity to put money into the enterprise like we have to make investments.”

Galhotra declined to reveal how a lot the corporate’s present provide to the union would price the corporate.

His feedback come a day after the union unexpectedly launched a strike on the automaker’s extremely worthwhile SUV and pickup truck plant in Kentucky.

“We’re shocked by the escalation final night time,” Galhotra mentioned. “Kentucky Truck Plant is likely one of the most necessary manufacturing vegetation of any sort in America.”

UAW President Shawn Fain mentioned Wednesday night time that the strike escalation was a results of the corporate repeating its earlier provide as a substitute of providing further financial advantages.

“This provide was the very same provide they gave us two weeks in the past. In our place, they don’t seem to be taking it severely,” Fain mentioned throughout a pre-recorded on-line video. “We have been very affected person working with an organization on this. On the finish of the day, they haven’t met expectations. They are not even coming to the desk on it.”

Ford’s most up-to-date proposal included 23%-26% wage will increase relying on classification; retention of platinum well being care advantages; ratification bonuses; reinstatement of cost-of-living; and different advantages.

Previously a number of days, Ford mentioned, it had been negotiating excellent points corresponding to retiree advantages and potential choices for future battery plant employees, according to steering from the union.

Electrical automobile battery vegetation have been a main level of competition for the union in bargaining with all three of the Detroit automakers. Ford, Normal Motors and Stellantis have all fashioned joint ventures with battery makers to fabricate EV batteries in the USA. Formally, as a result of they’re owned by joint ventures, the battery vegetation aren’t and will not be lined by the automakers’ agreements with the union.

The union has characterised the joint-venture preparations as a plan to close it out of the brand new factories, lots of that are beneath building now. However the UAW mentioned final Friday that GM had agreed to position the employees at these battery vegetation beneath its nationwide settlement with the union – a powerful trace that it now expects Ford and Stellantis to do the identical.