The labor unrest, which has deeply affected automobile manufacturers since the past months, brought bad news for Ford. Ford CEOthe latest proposal submitted by the United Automobile Workers union will lead the company to bankruptcy told.
Ford workers went on strike, production stopped at the factory
Contract negotiations between Ford Motor and the United Auto Workers union have come to a complete halt. The failure of both parties to reach an agreement led to tens of thousands of workers going on strike in the United States. Initial estimates are that three major factories Strike of 50 thousand workers He showed that he implemented it.
Speaking about the contract, Ford CEO Jim Farley said that if they accept the agreement, Ford will go bankrupt. “The United Automobile Workers’ current proposal would force the company into bankruptcy. “Everyone thinks we’re having final negotiations in a secret room, and that’s what we want, but nothing happens,” he said.
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For those who don’t know, union and company negotiators have been bargaining for a new four-year contract for more than two months. The key for both sides was workers’ wages. While the union is demanding a significant wage increase for employees, Ford refuses to accept it.
Ford CEO Farley says the union is an average worker’s salary 300 thousand dollars a year He said he wanted to remove it. However, he argued that this level was higher than other professional groups such as teaching and firefighters. UAW President Sean Fein said that the high cost of living is straining workers financially.
Farley said the union’s demands would be very costly and could drive the company into bankruptcy. Ford, The only major automaker in US history to not go bankrupt. However, a middle ground has still not been found between employees and managers.