Historic Strike of Ford Workers in Germany. Fighting Against Job Cuts.
Workers at the American car manufacturer Ford's plants in Cologne are preparing for the first strike in protest against the planned job cuts, the IG Metall union announced on Monday.
Employees at two factories, established in 1930, are expected to stop work starting Wednesday morning, with the strike lasting until the end of the night shift on Thursday morning, the union said.
Job Cuts
The management plans to reduce the number of jobs in Cologne by 2,900 by 2027.
Unions accuse Ford's executives of acting without a clear concept, thus endangering the survival of Ford's German subsidiary.
IG Metall is one of the most powerful German unions, representing workers in various manufacturing sectors, advocating for a collective agreement that provides high severance payments and financial security for workers - write Index.hr.
Broken Negotiations and Strike Decision
Negotiations between the two sides have stalled, leading IG Metall to hold its first workers' referendum last week, where as many as 93.5 percent of union members voted for an unprecedented workers' protest to increase pressure on management.
“It is time for the employer to take action and find a comprehensive solution for the workers in Cologne,” said Benjamin Gruschka, head of the works council at Ford's German subsidiary.
However, the leadership of Ford's German branch has limited options, as the company ultimately depends on its American parent company.
Expected Impact on Production
The strike will significantly impact production.
Of the 11,500 employees at Ford in Cologne, approximately 4,500 work in production and 3,500 in product development, according to union data. The spare parts center employs about 1,700 people, while the rest are in administrative and other departments.
The impact of the strikes is likely to be significant, as the vast majority of employees are union members and there is widespread dissatisfaction with the current situation.
Long-Term Problems of the European Subsidiary
Ford's European subsidiary has long been reporting losses, and in 2023, production of the Ford Fiesta, a small car that was manufactured in Cologne and was initially very successful, was discontinued.
Currently, Ford produces two electric cars in Cologne, whose sales are well below expectations despite investments of nearly two billion euros.
According to official data, Ford models accounted for only 3.5 percent of newly registered cars in Germany last year, compared to five percent in 2022.
Although Ford's factories will receive financial incentives of several hundred million euros from the American parent company for further investments over a four-year period, automotive industry experts believe this is far from enough.
Pessimistic Expert Forecasts
“The situation is bad, and the outlook is even worse,” said Ferdinand Dudenhöffer, director of the Center for Automotive Research based in Bochum.
“Ford is too small in the passenger car segment to operate profitably in Europe. That is the case now and it is very likely to remain so in the future,” he said.
Dudenhöffer gave a pessimistic forecast for Ford's business in Europe, saying that the number of vehicles sold is too low while labor costs are too high.
Ford has long been losing market share in Germany and Europe, the expert noted.
“Ford is getting smaller and smaller. It is now so small in Europe that it makes no sense to continue operating under the current circumstances,” he said.
Possible Solutions for the Future
According to Dudenhöffer, there are two solutions to Ford's European problems.
One option would be for the parent company from the US to sell its European automotive business to “get rid of the problem,” he said. Car production could remain in Cologne, but the development and administrative departments would be transferred to the buyer, according to the expert.
The second option would be to form a joint venture with another car manufacturer to achieve greater economies of scale and lower costs, Dudenhöffer said.
In this way, Ford of Europe “could finally become competitive,” he said, suggesting the French car manufacturer Renault as a potential partner.
