Ford on Wednesday announced that it will lay off more workers in Michigan, just a week after thousands of workers went on strike at the company’s Louisville, Kentucky, plant.
According to Ford, around 150 workers will be furloughed as a result of the strike by the United Auto Workers (UAW), impacting Ford’s economic outlook. Since the strike began in September, a total of 2,730 layoffs have occurred at the company.
Due to the walkout, the fired workers will not be eligible for financial assistance and will instead have to rely on strike funds.
Although the layoffs are relatively small, they are likely to escalate tensions between Ford and the union as negotiations continue. Last week, the UAW surprised Ford and other automakers involved in the strike by calling for a strike at the company’s Louisville facility. The plant is one of Ford’s major profit centers, and its closure will result in significant financial losses for the company.
Ford has stated that it has presented its best proposal to the union. The company’s latest offers to the UAW included 20% raises and significant improvements to benefits. However, the union rejected these offers and insisted that Ford, along with General Motors and Stellantis (the manufacturer of Jeep), can offer more.
UAW President Shawn Fain has indicated that he will not wait until Friday to announce further strike expansions.
