A dispute between UAW, the Union of Automobile Workers, and automotive manufacturer Ford Motor Company, has spread to the new $3.5 billion electric vehicle (EV) battery factory project in Marshall, Michigan. According to Ford, construction work remains on pause since 25 September until further notice.
The factory is one of four planned units in the US and a significant step on the path of electrification of Ford’s vehicle range. The LFP batteries to be produced in Michigan would be the first mass production unit for LFP batteries within the US, where traditional lithium-ion batteries dominate the market.
The Marshall project is being realised in co-operation with CATL, China’s leading EV battery manufacturer. This has caused political friction. Some Republicans argue that US government support of $1.7 billion for the new production unit will finally end up in China.
Ford has replied that production of LFP batteries in Ford’s fully-owned factory with Chinese technology in the US is better than importing them from China or any other low-cost country. The UAW has also demanded high wages and terms for the workers in the new battery plant, referring to the strategic importance of the new 2,500-employee factory.
Ford claims that the company will lose $5.4 billion on its EV business in 2023, but that EVs are the future of the auto industry. Ford said on Wednesday that it made a new offer to the UAW to end the strike at its car manufacturing plants. UAW admitted some progress with Ford compared to other automotive companies where it is also striking, but also expressed its dissatisfaction with the prolonged pause and its concern for stability of jobs in the EV vehicle factories.
Reuters reported that no progress has been made in the EV battery dispute. The company itself said it remains open to the possibility of working with the UAW on future battery plants in the US, but added: “these are multi-billion-dollar investments and must operate at competitive and sustainable levels.”
Three of the four battery plants under construction are part of the BlueOval SK joint venture between Ford and SK On of South Korea.
The workforce for these operations has not been hired, Ford said. The future employees at these operations can choose to be union represented and enter into the collective bargaining process, it said.
Photo: Ford workers on strike. UAW
