Ford Slammed by Union for Plans to Move New Model Production to Mexico

Ford is being slammed by the United Auto Workers union over its plans to move production of one of its models to Mexico from Ohio.
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Ford (F) - Get Report is being slammed by the United Auto Workers union over its plans to move production of one of its models to Mexico from Ohio.

In a letter to union members made public this week, UAW Vice President Gerald Kariem said Ford told the union it was relocating manufacturing of a next-generation vehicle from its assembly plant in Avon Lake, Ohio, to Mexico. 

A copy of the letter was provided to The Wall Street Journal Wednesday. Reuters first reported on the letter on Tuesday.

The United Auto Workers, the union representing employees at the Ohio Assembly Plant in Avon Lake, slammed Ford in a scathing letter over an apparent plan to pull a nearly $1 billion investment.

During labor negotiations in 2019, Ford pledged to spend $900 million on the Ohio factory, in part to retool for a new model that it would start building in 2023.

"We expect the company to honor its contractual commitments to this membership and when it fails to do so we will take action," Kariem wrote in the letter.

In a separate letter to employees, the Ohio plant manager, Jason Moore, said conditions have changed since the last UAW contract was negotiated and pointed to other investments the company has made at the factory, including hiring more than 100 workers to increase pickup truck production.

Any loss of production for Ford's Ohio plant would be the latest blow to the region, once a stronghold of vehicle manufacturing. General Motors  (GM) - Get Report in 2019 ceased production of the Chevrolet Cruze at a factory in Lordstown, Ohio, affecting more than 1,000 jobs in the area.

Meantime, Ford on Wednesday revealed it is implementing a flexible hybrid work model for 30,000 of its office employees to work in their offices on an as-needed basis.

At last check, shares of Ford were up 1.54% at $12.88.

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