UAW warns Ford (F.US): River Rouge Tool and Die plant to strike unless contract issues are resolved

UAW threatened to strike at Ford's (F.US) River Rouge plant in Detroit, Michigan, next week if the automaker does not resolve local contract issues.

UAW set a strike deadline of 11:59 pm local time on September 25, citing Ford's failure to reach an agreement with workers at the factory more than a year after the contract expired. The River Rouge plant, which employs about 6,000 workers, has more than 500 in the tool and die department, according to UAW officials. The union said the core issues in the negotiations include job security, wage parity and work rules. Ford said: "The company invested $15 million at the plant last year. We've been negotiating to resolve the issues. Negotiations are ongoing and we expect to reach an agreement."

It's worth noting that UAW recently also warned Stellantis (STLA.US) that it would face a strike action if the company did not honor its labor agreements. According to the information, in order to end the unprecedented strike against the three Detroit automakers, Ford, General Motors and Stellantis previously agreed to UAW's terms, including significant wage increases and higher pension contributions. Stellantis promised to produce the Dodge Durango in Detroit and reopen a shuttered assembly plant in Belvidere, Illinois.

However, due to high inventory and declining sales, Stellantis is struggling to cut costs, first through a company-wide layoff, and now plans to move Durango production to Windsor, Canada, and close the Belvidere plant.

UAW said in a statement that the company failed to plan, fund and launch these projects, violating the U.S. investment letter in the P&M and OC&E collective bargaining agreements. During the 2023 negotiations, the parties agreed to a Belvidere investment plan to address job security issues affecting all members of the bargaining unit. The company's failure to fulfill its commitment in the U.S. investment letter is a serious concern for all bargaining unit members. UAW demands that Stellantis revoke its decision and immediately plan and fund the reopening of the Belvidere plant. Failure to do so could trigger another strike against the company.