The United Auto Workers Union informed workers this week that Ford Motor intends to move a major project, worth $900 million, out of Ohio, to its plant in Mexico.
In a letter to members on Friday, UAW Vice President Gerald Kariem said the company told the union that it was relocating the manufacturing of a next-generation vehicle to a plant in Mexico. The UAW said the union was not given a clear explanation and that, in making this move, Ford was not living up to the commitment made the the factory in its last contract talks.
“We 100% reject the company’s decision to put corporate greed and more potential profits over American jobs and the future of our members,” he wrote. “We expect the company to honor its contractural commitments to this membership wand when it fails to do so we will take action. We are intensely exploring our options at this time.”
“Conditions Changed Since 2019”
According the the UAW, as part of a four-year contract agreement, Ford committed $900 million for a plant in Avon Lake, Ohio, including the next generation product that was to be added in 2023.
Although Ford has not yet directly addressed the issue the company did say in a letter to employees earlier in the week that conditions had changed since 2019. Meanwhile, Ford told Reuters that it has invested more than $185 million since 2019 at its Ohio Assembly Plant.
UAW President Rory Gamble wrote in an essay for the Detroit News that new subsidies and tax breaks for electric vehicles must come with “a commitment to locate any new jobs that are part of this transition in the United States in exchange for any tax dollar investment.”
Shares of Ford closed down 1.58% on Thursday at $12.49 a share.