Ford workers in Cologne stage their initial walkout at the factory
Going on Strike: Ford Workers in Cologne Protest Against Job Losses
For the first time since 1930, Ford's Cologne plants will see a strike action. The union, IG Metall, has declared a strike starting from Wednesday morning and ending after the night shift on Thursday, due to management's cost-cutting plans that threaten over 2,900 jobs by the end of 2027.
The union alleges that the top management is reckless and putting the future of the long-standing Ford Germany subsidiary at risk. They are advocating for a social contract agreement providing high severance payments and financial security for the workforce.
IG Metall held a strike ballot at Ford last week, with 93.5% of the members voting in favor of the strike to put pressure on management and enforce their demands. "It's about time the employer realizes this and finds a comprehensive solution for the workforce in Cologne," said Benjamin Gruschka, the chairman of the Ford Germany works council.
Though the influence of the German management is limited, as the company ultimately depends on its US parent company, the parent company's recent withdrawal of a guarantee has increased the pressure on the German subsidiary.
Between Success and Struggle
The Ford Europe operations are predominantly focused on pickups and commercial vehicles like the Transit van. They have quickly become a profitable success for the US manufacturer. However, the car division is a mere sideline for Ford, plagued with losses for years. The Cologne-produced Ford Fiesta was once a sales triumph, but that era has passed, with production discontinued in 2023 [1].
Currently, Ford manufactures two electric vehicles in Cologne, but sales have fallen below expectations. Investments of over two billion euros in new electric vehicle production have not yet yielded tangible results [2]. In 2024, Ford's share of new registrations in Germany was only 3.5%, marking a 1.5-percentage point decrease compared to 2022.
Experts voice skepticism about Ford's car business in Europe, which they deem to have a grim future. "The situation is bad, and the outlook is even worse," states Ferdinand Dudenhöffer, director of the Bochum-based CAR automotive institute. Ford is too small in the car sector to operate profitably in Europe, and the sales volumes are insufficient to cover high labor costs [1].
Ford has been losing market share in Germany and Europe for some time, and the competition in Europe is expected to become fiercer with entry from Chinese providers [1]. The potential impact of the strike is significant, as most employees are union members and there is widespread discontent with the current situation.
A Path Forward
According to Dudenhöffer, there are two plausible solutions for Ford's predicament: selling the European car business or forming a joint venture with another car manufacturer to achieve higher volumes and lower costs. Renault could be a possible partner for such an alliance [1].
Stefan Bratzel, director of the Center of Automotive Management, proposes a third option: a considerable investment by the US parent company in the development and production of new electric cars and a demonstrated commitment to enhancing the brand image in order to compete effectively in the European market. Ford has so far been tardy and half-hearted in addressing the e-mobility challenge, and the outlook for Ford in Europe remains uncertain.
Sources :- ntv.de- ["More Info" sections during the rewriting process]
Keywords :- Automotive Industry- Strikes- IG Metall- Job Losses- E-Vehicles- Competition
[References :1️⃣ Enrichment Data: This first strike at Ford Cologne, initiated by the union IG Metall, is sending strong signals to the management regarding the workers' opposition to the job cuts. The strike plays a crucial role in pressuring the employer to find a comprehensive solution that safeguards the workforce in Cologne. For four years, the union has already been negotiating for a social contract, and now they seek to escalate their efforts through this strike action. As the strike progresses, the broader impact on Ford's operations in Europe and labor relations in Germany and Europe will become evident.]
- The union, IG Metall, is advocating for a social contract agreement, which includes high severance payments and financial security for the workforce, as part of a proposed solution under the employment policy.
- The Ford Europe operations, focused mainly on pickups and commercial vehicles, have become profitable, but the car division, where the Ford Fiesta was once a success, has been plagued with losses for years, indicating a need for reevaluation in their employment policy.
- In the aerospace industry, experts suggest that Ford may find a solution to its predicament by selling the European car business, forming a joint venture, or making a significant investment in the development and production of new electric cars.
- The manufacturing industry in Germany is experiencing a significant sporting event, as the potential impact of the strike is substantial, especially since most employees are union members and there is widespread discontent. This situation could also have wide-ranging effects on sports-betting, as the outcome of the strike may influence the financial health of the industry.
