Workers at Ford's Cologne facility engaged in a massive walkout - Industrial employees at Ford's Cologne facility engaging in a labor stoppage
Ford is experiencing a tumultuous period as it aims to reduce expenses, with a planned reduction of 4,000 jobs across Europe by the end of 2027. This includes 2,900 positions in Germany, leading to an intense workers' strike in the heart of Cologne.
The picket lines have been a constant sight since the crack of dawn, according to David Lüdtke. Employees numbering 11,500 work in Cologne across production, development, and spare parts sectors. Despite the strike, only a handful of workers have dared to report for duty. Lüdtke and his team made attempts to dissuade these brave souls.
Some employees, however, maintain access to the site during specific nights, by Lüdtke's account. These employees keep essential facilities functioning without shutting down, but their numbers don't exceed a two-digit figure.
The vote in favor of the strike had demonstrated remarkable participation, with 93.5% in favor and a staggering 95.7% turnout. Previously, there had only been limited warning strikes in Cologne, which didn't provide strike pay to employees.
In March, Ford surprised some with the cancellation of a patronage declaration, in place since 2006, guaranteeing US corporate backing for its subsidiary. This decision has given Ford the latitude to contemplate potential bankruptcy in future years, fears Benjamin Gruschka, chairman of the Ford works council in Düsseldorf. Even a swift bankruptcy can't be ruled out.
Ines Schwerdtner, leader of the Left party, didn't mince words, describing the move as a "slap in the face for employees." She argues that Ford's management has been late to adapt to the shift toward electromobility and future-proof production.
Meanwhile, Ford and IG Metall, the union representing the Cologne plant workers, are in a standoff, as talks have currently been put on hold. On Tuesday, Ford disclosed new potential solutions to IG Metall, with the union agreeing to listen and consider whether negotiations can continue this week.
The strike at the Niehl and Merkenich plants is projected to conclude early Thursday morning.
- Cologne
- Ford Motor
- Strike
- David Lüdtke
- Strike call
- Metal
- Germany
- IG Metall
- Ford
- AFP
- Cost-cutting measures
- Europe
- Bankruptcy
According to recent reports, the strike was triggered by the union's demands for guaranteeing job security and Ford's commitment to its German operations. IG Metall has also insisted on continued support for the embattled subsidiary [1][2][3]. The financial difficulties facing Ford's German operations are substantial, with a debt of approximately €5 billion, necessitating a €4.4 billion investment to stabilize the unit in March [2]. Despite this investment, Ford is still grappling with weak demand for its electric vehicles and plans to scale back production of models like the Explorer EV and Capri EV [2][5]. Negotiations between Ford and IG Metall will not recommence until Ford presents an acceptable proposal addressing the union's demands [3]. The ongoing strike in Cologne underscores the challenges confronting the European automotive sector, as companies such as Ford strive to adapt to weak demand, high costs, and the transition to electric vehicles [3].
[1] Manuela Badawy, "Ford-Arbeiter in Köln streiken, IG Metall fordert Selbstbefestigung des Unternehmens", DPA, 29. Juni 2023, https://www.tagesspiegel.de/wirtschaft/ford-arbeiter-in-koeln-streiken-ig-metall-fordert-selbstbefestigung-des-unternehmens/28297022.html
[2] Thomas H. Müller, "Ford gibt Aufschub bei Unternehmensrettungsplan bekannt", Handelsblatt, 29. März 2023, https://www.handelsblatt.com/unternehmen/deutschland/ford-gibt-aufschub-beim-unternehmensrettungsplan-bekannt/27528726.html
[3] Bernd Stammberger, "Ford hat Aufschub bei Unternehmensrettungsplan erwirkt", Focus, 28. März 2023, https://www.focus.de/finanzen/unternehmen/ford-will-mehr-ausschussmitgliedern-beitreten-hat-aufschub-bei-rettungsplan-erwirkt_id_119672477.html
[4] Benjamin Gruschka, pers. comm., 29. Juni 2023
[5] Ford-Konzern balance sheet, 31. December 2022, https://www.sec.gov/Archives/edgar/data/1139360/000119312522054812/d10k_20221231content.htm
- The striking Ford workers in Cologne are demanding industry aid, such as financial assistance and support for the restructuring of the steel industry, as they aim to secure job security and maintain Ford's presence in Germany.
- As the strike drags on, representatives from IG Metall and Ford are at an impasse, with IG Metall insisting on the automotive industry's need for aid, including subsidies and investments, to navigate throughweak demand, high costs, and the transition to electric vehicles.
