UAW Accused Of Delaying Labor Deal Over Battery Plants' Wages

Ford Motor Chief Executive Jim Farley accused the United Auto Workers (UAW) of stalling a new U.S. labor agreement to pressure the automaker into paying workers at new battery plants the same top wages as assembly plants, David Shepardson reported for Reuters.

Ford Chief Executive Jim Farley stated that "The UAW is holding the deal hostage over battery plants," and expressed concerns that a "bad deal" could jeopardize the financial viability of some U.S. vehicle production. I Photo: Ford Media

Farley also revealed that the automaker is awaiting "final language" from the U.S. Treasury regarding whether batteries produced at a planned Michigan plant using Chinese technology would qualify for tax credits.

He stated, "The UAW is holding the deal hostage over battery plants," and expressed concerns that a "bad deal" could jeopardize the financial viability of some U.S. vehicle production.

UAW President Shawn Fain disputed Farley's claims about the negotiations and stated that there were substantial differences between the parties concerning core economic proposals, including "job security in this EV transition," which Farley himself acknowledged would result in a 40% reduction in jobs for their members.

On Monday, Ford announced that it had halted work on its $3.5 billion Marshall, Michigan battery plant, which would utilize technology licensed from the Chinese battery company CATL, citing concerns about its ability to compete effectively.

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