The United Auto Workers (UAW) union began a surprise strike against Ford Motor (NYSE:F), specifically targeting the automaker's most profitable SUV and pickup truck production facility in Kentucky.
This unexpected strike started at 10:30 pm GMT (6:30 p.m. ET) on Wednesday, disrupting operations at Ford's Kentucky Truck Plant. This facility is responsible for manufacturing Ford Super Duty pickups, along with the Ford Expedition and Lincoln Navigator SUVs. The workforce at this plant comprises 8,700 UAW members.
The strike places additional pressure on Stellantis (NYSE:STLA) and General Motors (NYSE:GM) as negotiations are expected to resume Thursday.
According to information from the automakers and the UAW, the Kentucky strike serves as a warning to Stellantis and GM as the automaker’s wage and benefits proposals are not as good as Ford's.
Although there are currently 8,700 workers striking at Ford's Kentucky Truck plant, this represents only a fraction of the 150,000 UAW workers employed by the Detroit Three automakers. However, the strike has led to furloughs of thousands of additional workers in non-striking operations, as automakers have deemed their work unnecessary due to the walkouts.
Ford warned on Wednesday that employees at a dozen other factories may also be sent home due to the ongoing strike at the truck plant.
“The decision by the UAW to call a strike at Ford’s Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through ‘reputational damage’ and ‘industrial chaos,’” said Ford.
Ford’s Kentucky plant generates $25 billion in annual sales, about a sixth of Ford's global automotive revenue.
Prior to the Kentucky walkout, the union had already called for strikes at five assembly plants, including two owned by Ford, across the three companies, and 38 parts depots operated by GM and Stellantis.
Shares of F, STLA and GM are down 2.20%, 0.94% and 1.03% respectively in pre-market trading Thursday morning.