The Unprecedented Strike at Ford Cologne: IG Metall Makes a Stand
Striking workers from Ford's Cologne plant join labor movement; first time for this location - Workers in Cologne stage a labor dispute, halting operations in multiple industries
For the very first time in its centennial existence, chaos has enveloped the Ford plants in Cologne, Germany, as IG Metall, the powerful trade union, instigates a strike, practically grinding production to a halt. The morning began with union members setting up barricades at plant entrances, nixing early shifts. The beleaguered company plans to slash around 2,900 jobs from its current workforce of 11,500 by the end of 2027, leading to sharp discontent among the employees.
The IG Metall are holding firm, demanding a complete change in direction and substantial severance packages for employees who voluntarily leave or have their positions outsourced. Dismissals due to operational reasons are off the table until 2032.
"Production at Ford Cologne has come to a complete standstill," declared IG Metall spokesperson, David Lüdtke, after early shifts were called off. The strike affects every aspect of the site, including manufacturing, R&D, administration, and more. "We're keeping everyone out."
A Few Crack the Whip
While the strike is rigorously enforced, there are exceptions. Certain workers have been granted access through an emergency service gate. "And if someone truly wishes to act as a scab, they can enter - but we'll give them a piece of our mind first," said Lüdtke. By nine in the morning, the picket at the emergency gate reported that only three strikebreakers had managed to slip through the barriers. The strike is due to end with the conclusion of the last night shifts on Thursday morning.
Ford Werke GmbH was originally established in Berlin in 1925 and has been headquartered in Cologne since 1930. The Cologne site boasts several production facilities, including ones dedicated to electric vehicles and commercial vehicle transmissions, hence the term Ford Werke. There is also a spare parts center.
A Union-Free Past
The Cologne Ford site has never experienced a strike led by a union before. In 1973, there was a spontaneous walkout by Turkish employees protesting the termination of 300 countrymen and against prevalent discrimination, but the works council and the union did not support their cause.
This current strike has no connection to the long-ago labor disturbance. The IG Metall conducted a vote in early May, and an astounding 93.5% of IG Metall members working at Ford voted in favor of the strike. The first one-day strike is now underway.
The Works Council Revs Up the Pressure
Ford Germany's works council chief, Benjamin Gruschka, states that the strike enormously amplifies pressure on management. "It's already causing losses, costing them a few million today," he said. Should management refuse to adjust its stance, there will be further walkouts. "Then we'll schedule more strike days, and the losses will be even more significant."
Gruschka underscores the urgency behind the labor dispute. He highlights that the US parent company has rescinded a patronage declaration, effectively casting a gloomy shadow over the potential for insolvency. "The employees are aware that it's all or nothing." While the insolvency of Ford Werke GmbH is theoretically feasible now, it wasn't before.
The IG Metall Demands a Financial Lifeboat from the US Parent Company
In case of insolvency, the IG Metall is adamant about securing a financial safety net from the US parent company to safeguard employees. At present, insolvency remains purely theoretical, as Ford Germany's debt has significantly dwindled following a financial injection from the US.
A Ford Spokesperson is Hopeful
While the strike is in progress, a spokesperson from Ford expressed that they remain optimistic about negotiating a resolution through open dialogue with their social partners.
Politicians Enter the Fray
The striking workers received visits from politicians. The chairman of the SPD faction in the NRW state parliament, Jochen Ott, chastised the Ford management for their "intolerable treatment" of employees. "Employees have the right to reasonable social benefits in case certain positions are eliminated." Ford has shifted exclusively towards producing electric cars in Cologne, but is lagging behind in the field of e-mobility. Two electric SUVs have recently started rolling off the assembly line.
Social Democrat Ott recalls his early days as a member of parliament, having been elected in 2010. A Ford manager once dismissed electric cars as "nonsense" in a conversation with him. "I told him, 'We need an affordable electric Fiesta for the average person.' That suggestion was rebuffed," says Ott. "Ford took a completely wrong approach, and the employees are now coping with the consequences of the management's decisions."
A Glimmer of Hope Amidst Shadows
The US parent company has performed well in the commercial vehicle and pick-up sectors but doesn't produce these vehicles in Germany. The cars crafted for the European market are losing money for Ford. Only if this changes will the Cologne site have a viable future – this is clear to everyone involved.
In 2024, Ford's market share in the German automotive market stood at a mere 3.5%, a drop of 1.5 points compared to 2022. The sales of the new electric cars are currently underperforming expectations. However, there has been a glimmer of hope recently: In April, the number of newly registered Ford passenger cars jumped by 15.2% compared to the previous year, boosting the market share to 3.9%.
- Automobile Industry
- Electric Vehicle
- IG Metall Union
- Strike
- Works Council
- Insolvency
- David Lüdtke
- Germany
- Ford-Werke GmbH
- Benjamin Gruschka
- Jochen Ott
- Berlin
- Commercial vehicle
- SPD
The IG Metall union, in their demand for a change in direction and substantial severance packages, is seeking aid from the steel industry, specifically the US parent company of Ford, to ensure employee protection in case of insolvency.
The ongoing strike at Ford Cologne, led by the IG Metall, has caused significant financial strain on the company, with the works council chief, Benjamin Gruschka, stating that each day of strike amplifies the pressure on management and results in millions of dollars in losses.
