Ford's Cologne Plants: IG Metall Takes a Stand Against Job Cuts
Ford manufacturing site in Cologne faces labour strike for the initial time - Labor action escalates in Cologne: Union members walk out in protest over working conditions and compensation
Never before have the Ford plants in Cologne seen a strike - but that all changed when IG Metall, the dominant labor union in the German metalworking industry, set up picket lines at the plant gates. With this bold move, early morning shifts were canceled, putting the brakes on production, development, administration, and other areas across the entire facility. The strike was spurred by Ford's plan to axe around 2,900 jobs out of the current roughly 11,500 positions by the end of 2027.
It's no secret that the IG Metall union is demanding a U-turn from Ford, calling for generous severance packages for those leaving voluntarily or finding their jobs outsourced elsewhere. Job dismissals due to operational reasons will be off the table until 2032.
"Factory work here has ground to a halt," declared IG Metall spokesman David Lüdtke at the Ford plants in Cologne. The strike has affected the site's various departments: production, research, administration, and other areas. "We won't let anyone in."
Despite the strike, some employees have access to an emergency service gate, as well as those determined to cross the picket lines as "scab workers." As of nine in the morning, a picket at the emergency service gate reported only three scab workers had entered. The work stoppage is due to wrap up with the end of the last night shifts on Thursday morning.
The Ford-Werke GmbH was founded in Berlin back in 1925 and relocated its headquarters to Cologne in 1930. The Cologne Ford site boasts multiple production facilities, including those for electric vehicles and commercial vehicle transmissions, earning the moniker Ford-Werke. There's also a parts center.
The Ford plants in Cologne have never experienced a labor strike by a union before. In 1973, there was a "wild" strike by Turkish employees protesting the dismissal of 300 of their compatriots and generally against discrimination. This unrest, however, was non-union-organized and ultimately unsuccessful.
The current strike differs from this long-ago labor dispute. The IG Metall union convened a vote at the start of May, which saw 93.5% of IG Metall members at Ford vote in favor of the strike. The first one-day labor action has now begun.
According to Ford Germany's works council chairman, Benjamin Gruschka, the strike has sent shockwaves through Ford management. "This is going to cost them bigtime," said the works council. If management remains resolute, further strikes will follow. "Then we'll schedule more strike days, and it's going to hurt even more."
Gruschka emphasized the gravity of the labor action. He made it clear that the US parent company's decision to scrap a patronage declaration essentially threatened the entire operation with bankruptcy. "The employees know they're fighting for their livelihoods." Although the cancellation of the patronage declaration technically made insolvency a possibility, it was not before.
The IG Metall is insisting on financial support from the US parent company for its employees in the event of insolvency. The current financial crisis is purely theoretical, as Ford Germany's debt mountain has significantly shrunk following a US financial injection.
A Ford spokesperson expressed cautious optimism at the onset of the strike: "We remain hopeful that we'll reach an agreement in our ongoing discussions with our social partners."
Local SPD politician, Jochen Ott, voiced his criticism of Ford management, citing their alleged rough treatment of employees. "The employees have a right to fair social offers - in the event that certain positions become obsolete." Ford has pivoted to electric vehicle production at the Cologne plant, but the demand for these vehicles has been lackluster so far. Recently, however, there's been a glimmer of hope: in April, new Ford passenger car registrations increased by 15.2% compared to the previous year, leading to a rise in the market share to 3.9%.
- Ford Motor
- Ford
- Cologne
- Metal
- IG Metall
- Strike
- Works Council
- Insolvency
- David Lüdtke
- Germany
- Ford-Werke GmbH
- Benjamin Gruschka
- Jochen Ott
- Berlin
- Commercial vehicle
- SPD
Enrichment Insights
The strike at Ford's Cologne plants was motivated by impending job cuts across Ford's European operations, as the company is grappling with approximately €5 billion in debt and has announced plans to cut around 4,000 jobs across Europe by 2027. IG Metall, the labor union at Ford, supports the strike overwhelmingly, with 93.5% of its members voting in favor, indicating a strong resolve to fight for their jobs. The union demands that Ford put forth an acceptable offer to halt the proposed job cuts, halting negotiations with Ford until such an offer is presented. The strike is intended to pressure Ford to act, although some internal criticisms question the union's previous agreements, which may have permitted job cuts without significant resistance.
- The strike by IG Metall at Ford's Cologne plants is a response to Ford's plan to cut jobs, with the union demanding a U-turn from the company and proposing generous severance packages.
- The strike has been highly supported by IG Metall members, with 93.5% voting in favor, demonstrating a strong resolve to preserve jobs.
- The strike is part of an larger industry-wide issue, as Ford is struggling with approximately €5 billion in debt and plans to cut around 4,000 jobs across Europe by 2027. The union's actions aim to pressure Ford to reconsider these job cuts.
