Ford announces layoffs at Michigan facilities in wake of strike at Chicago plant
CHICAGO (CBS Chicago/CBS Detroit) -- Ford on Wednesday night announced plans to lay off an additional 400 workers in connection with the strike now in progress at the Chicago Assembly Plant.
Ford said the strike at the Chicago plant at 126th Street and Torrence Avenue is causing more knock-on effects at other facilities. It has now impacted operations at the Livonia Transmission Plant and the Sterling Axle Plant – both in the suburbs of Detroit.
About 400 employees have been asked not to report to work – 350 at the Livonia plant and 50 at the Sterling plant – effective Thursday.
These 400 layoffs are in addition to 930 more at other facilities – bringing the total for Ford to about 1,330 employees.
On Friday of last week, approximately 4,600 Ford workers at the Chicago Assembly Plant at 126th Street and Torrence Avenue on the Southeast Side joined the United Auto Workers on strike against Detroit's Big Three carmakers.
UAW President Shawn Fain said Friday that the Ford plant in Chicago, and the General Motors Lansing Delta Township assembly plant in Michigan were joining the strike on Friday, adding about 7,000 more workers to the strike against Ford, GM, and Stellantis – the parent company of Chrysler, Dodge, Jeep and Ram, along with a number of foreign brands.
The Ford factory in Chicago makes Ford Explorers and Explorer Police Interceptors, as well as the Lincoln Aviator SUV. The GM factory in Lansing makes the Chevy Traverse and Buick Enclave and other SUVs. A metal parts stamping plant in Lansing will remain open while the assembly plant is on strike.
Ford soon afterward announced layoffs at a stamping plant at south suburban Chicago Heights. Ford said the strike at the Chicago Assembly Plant had directly impacted operations at the Chicago Heights stamping plant – and an engine plant in Lima, Ohio. There were a total of 330 layoffs between the facilities.
The latest layoffs at the plants outside Detroit come a day after Ford presented its seventh offer to the United Auto Workers, calling it the "strongest" offer made.
The proposed agreement would run through April 30, 2028, Ford said on Wednesday. The company says the offer includes "unprecedented improvements in wages (putting employees among the top 25 percent of all U.S. jobs, hourly and salaried) and benefits, product commitments for every UAW factory, and job security."
The automaker says it has received two counteroffers from UAW.
"There's no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation. We want to make sure our workers come out of these negotiations with two things – a record contract and a strong future," CEO Jim Farley said in a statement.
The offer includes a more than 20 percent pay increase for permanent workers and a 26% pay increase for temporary workers. Ford also proposed converting temporary workers to permanent positions with at least three months of continuous employment.
In addition, the company proposed the traditional cost-of-living allowances and to reduce the time to earn top wage by more than half.
"We've put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future," Farley said.
It has been nearly three weeks since the UAW went on strike against Detroit's big three automakers. Workers at more than 40 plants across the country have been called to walk out and strike.
