Ford Workers Decide to Strike
Workers at Ford plants in Cologne, Germany, have decided to strike amid rising tensions over planned layoffs at the company's European operations. The head of the Works Council announced on Monday that they will strike on Wednesday.
Layoffs Continue
Ford announced in November last year that it would cut about 14 percent of its workforce in Europe. The company blamed the cuts on low demand for electric vehicles and the transition to new technologies without adequate government support. However, workers insist that the cuts are simply a move to reduce the workforce and that management has failed to come up with alternative solutions.
Negotiations with Unions Continue
Ford declined to comment on the matter due to ongoing negotiations with unions. IG Metall union, while supporting the workers’ decision to strike, has not yet commented on the statement. However, the union is expected to take more concrete steps in the future.
Challenges in the Global Automotive Industry
Automakers around the world are facing similar economic challenges, particularly from new competition from China and the high costs of electrification. Volkswagen, Nissan, and GM are also cutting jobs. Other automakers, such as Ford, Mercedes-Benz, and Stellantis, are facing similar economic challenges, which have led the company to scale back its 2025 forecast.
Cash Support to the German Unit
In March, a $4.8 billion cash injection into Ford’s German unit voided a deal to cover the company’s losses in Germany, undoing a deal that had been in place since 2006 and prompting fierce protests from the IG Metall union.
While Ford is demanding alternative solutions to protect the workforce in Germany and transition to a more efficient structure, it is anticipated that workers may make this process even more difficult.
