Ford Motor Company is in the process of making operational adjustments at its Rouge Electric Vehicle Center located in Dearborn, Michigan, a facility known for manufacturing the F-150 Lightning, an electric variant of the popular F-150 pickup truck. Approximately 700 jobs are slated to be affected by this move, though it’s worth noting that this workforce reduction is distinct from the ongoing United Auto Workers union strike.
The forthcoming changes involve a temporary reduction in shifts, with the plant shifting from its previous three-shift arrangement to a two-shift operation. These shifts will be rearranged, and a segment of the workforce will be impacted as part of this rotational downsizing strategy.
Impact of Labor Disputes and Supply Chain Challenges on Ford’s Operations
Earlier this summer, Ford had initiated a temporary shutdown of the Rouge Electric Vehicle Center. The purpose was to implement significant upgrades within the facility aimed at bolstering production capabilities. However, the recent decision to reduce the workforce is primarily linked to a host of challenges emanating from supply chain constraints. The company is grappling with intricacies tied to not only the supply chain but also the imperative task of managing and delivering vehicles that were temporarily held back for rigorous quality checks. This quality assurance process was implemented following the resumption of production activities in August.
Ford Motor Company recently reported a significant decline of 45% in Lightning sales for the third quarter compared to the same period last year. However, the company remains optimistic about a rebound in sales during the last quarter of the year, anticipating an upturn as plant capacity increases. Despite this sales dip, the overall demand for Ford’s electric vehicle lineup surged with a notable 65% increase during the third quarter.
The United Auto Workers’ targeted strike impacted five assembly factories across Ford, General Motors, and Stellantis, leading to workforce layoffs at all three companies.
In response to the UAW’s expanded strike at its largest factory, the Kentucky Truck Plant, Ford announced an additional 500 layoffs spread across five component plants. The strike’s extension to Kentucky Truck last week raised concerns, prompting Ford executives to predict a potential total of 4,600 layoffs across various plants by the end of the week. To date, nearly 2,500 workers have been laid off, not including those involved in Lightning production.
Labor Union’s Response and Criticism of Layoffs Amid Ongoing Strike, Including Ford
Stellantis recently expanded its workforce reductions, affecting 780 employees across two facilities in Kokomo, Indiana. This development adds to the ongoing company-wide layoffs resulting from the strike that began on September 15, totaling 1,420 layoffs.
General Motors (GM) has also felt the impact, with 2,300 employees laid off, a consequence attributed to the ongoing strike. However, GM has not announced any additional layoffs in recent days.
Employees laid off due to the strike find themselves facing eligibility challenges for unemployment benefits in most states. Additionally, they do not qualify for “sub pay” provided by the companies. Typically, unemployment benefits and sub pay together cover 74% of their regular pay while on layoff. On the other hand, workers from the F-150 Lightning production line who are laid off will be eligible for both unemployment benefits and sub pay, as confirmed by Ford spokesperson Jessica Enoch.
The union has contested the companies’ rationale for laying off workers whose work was impacted by the strike at other plants. They assert that these laid-off workers should receive the same $500 weekly in strike benefits, similar to the approximately 35,000 individuals currently on strike across the three companies.
“That’s them trying to put the squeeze on our members to settle for less,”stated Fain in the past. “With their record profits, they don’t have to lay off a single employee.”
