Ford's Cologne Workers Ready to Lock Horns with Management
On-Duty Ford Staff in Cologne Battle for Indefinite Work Stoppage - Striking Ford Workers in Cologne Prepared for an Indefinite Walkout
Here in the heart of Cologne, the air is thick with tension. Ford workers are on the verge of a labor face-off, a first in the city's history. Boasting a whopping 93.5% approval, the IG Metall union members have given the green light to employ "all union tactics, including strikes" to demand a worker-friendly social contract. Now, management is bracing for the storm as workers prepare to go to bat for their rights.
David Luedtke, IG Metall's spokesperson at Ford Cologne, echoes the workers' unwavering resolve. With a colossal 95.7% turnout, IG Metall is taking stock of their next steps, and strikes could be just around the corner. It's uncertain just how intense these strikes will be, but they're expected to be persistent—a departure from the previous warning strikes in March and April.
Kerstin Klein, the first chairperson of IG Metall Cologne-Leverkusen, has a sharp message for management: "Ford must act or face the consequences." Management's reluctance to budge could lead to more than just a blow to Ford's image. The fallout from a hard-hitting labor conflict could reach Ford's commercial vehicle business in Europe, and even bruise its reputation.
Interestingly, this would be the first time that Ford workers in Cologne have gone on strike in the wake of a vote, since previous votes have seen deals hammered out between management and the union. With over 11,500 employees in the city, mostly union members, Ford finds itself in a precarious position.
Ford's Electric Investments Floundering in Cologne
You probably know this by now, but Ford's German subsidiary has two electric car model productions going on in Cologne. Despite a $2 billion investment to convert the Cologne plant for electric production, sales are still struggling. The German operation remains loss-making.
In light of the dire financial situation, management in Cologne hopes to trim 2,900 jobs by 2027. However, they'll need the green light from the works council since a deal signed two years ago still restricts dismissals for operational reasons—that contract will stand firm until 2032.
Unsatisfied with a layoff plan that's taking so long to materialize, Verdi is demanding high severance packages for departing employees, as well as financial protection for those left behind. The risk of Ford's plants going belly-up is, admittedly, a theoretical one at present, but the recent withdrawal of the U.S. parent company's guarantee has made it a somewhat reality.
Now that negotiations for a new social contract have hit a wall, IG Metall has called for a vote and received it. With the desired approval in hand, the union can now call for either short-term or open-ended strikes. A Ford spokesperson acknowledges the workers' right to strike and remains committed to constructive dialogue. But as far as IG Metall is concerned, the negotiations are on hold until management puts a viable proposal on the table.
- The uncertainty surrounding Ford's employment policy in Cologne, as workers prepare to strike for their rights, could potentially impact not only the automotive industry but also extend to the finance sector, given the significant financial investment already made for electric car production.
- As negotiations for a new social contract falter, IG Metall's focus on community policy and employment policy extends beyond the transportation and automotive industries, touching upon the industry and finance sectors, especially considering the potential consequences of a hard-hitting labor conflict for Ford's commercial vehicle business in Europe.
