Ford CEO Jim Farley accused the United Auto Workers (UAW) of threatening negotiations with issues that are not covered by the contract, amid growing tension between the union and Detroit's two largest automakers. As the strike enters its third week, the focus of negotiations is now turning to a more important issue between the union and its largest employer: the fate of workers in the future era of electrification.
While economic concerns remain, the union wants to lay out a framework for workers at the planned battery plant and secure protections for workers who make engines, transmissions and other parts that may one day be obsolete. As a result, despite progress on other issues, tensions between the two parties remain.
"What's really frustrating is that I think we could have reached a compromise on pay and benefits, but so far the UAW has held up an agreement because of the battery plant issues," Farley said during the webcast. "Please remember, folks, these battery factories don't exist yet."
In response, UAW President Shawn Fain said the union is still on strike over pay, job security and retiree issues.
"I don't know why Jim Farley would lie about the status of the negotiations," Fain countered in a statement. "Maybe it's because he wasn't involved in the negotiations this week. If he were here, he would know that we gave Ford a comprehensive proposal on Monday and haven't heard back yet."
The union is still on strike at Stellantis NV's Toledo plant and its distribution center that supplies repair parts to dealers. On Friday, the UAW expanded the strike to two more GM and Ford Motor plants but stopped short of targeting Stellantis, citing a last-minute breakthrough in negotiations.