Ford, German union strike deal for job protection, voluntary reductions in Cologne
Published in Automotive News
Ford Motor Co. has struck a deal with a German labor union that includes protections for more than 10,000 workers at its Cologne plant and voluntary job reductions as the Dearborn automakers struggles with selling electric vehicles in Europe.
Ford has approved the negotiation results that would offer job security to its employees, and IG Metall members will vote on the agreement in a second ballot after the company holidays, the union said Friday.
The automaker said in November it planned to eliminate 4,000 jobs in Europe by the end of 2027, mostly in Germany and the United Kingdom. The plan included cutting 2,900 jobs in Cologne, according to the union. Underperforming EV sales, reduced governmental support for EVs, increased competition from Chinese automakers and economic pressures contributed to the decision.
"With the overall package we've achieved," said Benjamin Gruschka, chairman of the General Works Council, which represents employee interests within the company, "we've created a safety net for everyone. We've also managed to secure vocational training and long-term employment until 2032."
The Detroit News left a request for comment on the deal with a Ford representative.
The union said the future of production in Cologne remains unclear. For now, job cuts primarily will be voluntary departures, and employees affected by downsizing will be able to swap in for workers leaving, according to news releases from the union. The deal also expands partial retirement programs and sets minimum requirements for divisions that are sold off. A bonus is included as well, though details of that weren't included in the release.
Ford in March announced plans to invest up to $4.8 billion into Ford Werke GmbH, replacing a financial support letter for the German business that's been in place since 2006. That step prompted backlash from IG Metall, which called the move a "dirty trick." Ford had characterized the move as aligning its commitments with what it offers its other businesses around the world. In May, IG Metall held a daylong strike over the disagreement.
Ford builds the electric Explorer SUV and Capri crossover in Cologne. The city is in the western part of the country where Ford has a body and assembly plant with 4,090 employees, a transmission plant with 1,280 people, a tool and die plant with 1,140 people, an engine plant with 810 people and a forging site with 410 people, according to Ford's website.
The automaker previously invested $2 billion to turn Cologne into a hub for EV production. Germany, however, has pulled back incentives for the vehicles, and the company has called for more support and increased charging infrastructure to encourage drivers to switch to the all-electric powertrains.
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