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Ford Says ‘Significant Gaps’ Remain in UAW Labor Contract Talks

Ford Motor (F.N) stated on Sunday that while there have been improvements in certain areas, there are still “significant gaps to close” on important economic concerns before it can come to a new labor deal with the United Auto Workers union.

It stated in a late-night statement following meetings over the weekend that the “issues are interconnected and must work within an overall agreement that supports our mutual success.”

The UAW did not immediately respond to a request for comment after citing “real progress” in discussions with the No. 2 U.S. carmaker on Friday.

In contrast to Ford, the UAW has extended their strikes to 38 parts distribution facilities nationwide for General Motors (GM.N) and Stellantis, the parent company of Chrysler (STLAM.MI). It was unclear right away if main table negotiations with GM and Stellantis over the weekend.

After the previous four-year labor agreements expired on September 15, the UAW started unprecedented, simultaneous strikes at one assembly plant in each of the Detroit Three. About 5,600 more workers joined the 12,700 who were already on strike on Friday as a result of the strikes at additional GM and Stellantis locations.

Shawn Fain, president of the UAW, stated on Friday that Ford had improved its contract offer by increasing profit sharing and allowing workers to walk out in protest of factory closures, but that the union still had important concerns to address.

The UAW is requesting 40% hikes coupled with 32-hour work weeks, the reinstatement of defined benefit pensions, and the elimination of pay disparities dividing younger and older employees, while the Detroit Three automakers have proposed 20% raises over 4-1/2 years.

GM said last week it was forced to idle its Kansas car plant due to a parts shortage resulting from the strike, which led it to temporarily furlough 2,000 workers in Kansas. Stellantis temporarily laid off 68 workers in Ohio last month. President Joe Biden will travel to Michigan on Tuesday to show support for workers and visit a UAW picket line. Donald Trump, who is running for president again, will speak about the UAW strike in Clinton Township, Michigan on Wednesday. 

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