Ford CEO Farley says the UAW is stalling talks on electric vehicle battery factories

DETROIT — The United Auto Workers union is stalling negotiations with Ford Motor Co. over future electric vehicle battery plants, Ford CEO Jim Farley said during a news conference Friday.

“I think we could have reached a compromise on wages and benefits but so far the UAW is holding the deal hostage on the battery plants,” he said Friday after the UAW announced it would expand strikes to include two additional assembly plants — one each for Ford and the UAW. General Motors.

Farley criticized the union for its targeted strike strategy, saying he felt the actions were “deliberate” and insinuating the union was never interested in reaching an agreement before the September 14 deadline.

These multibillion-dollar electric vehicle battery factories — and the thousands of workers expected to work in them — are crucial to the future of the auto industry, and are uniquely positioned to have wide-ranging impacts on the UAW, automakers, and President Joe Biden’s push toward domestic manufacturing.

Current and former union leaders previously told CNBC that battery plants should be a priority for worker organizing, regardless of whether they are directly discussed in the national agreement, for the long-term viability of the union.

However, it is considered a “wild card” issue in contract negotiations. Many of the battery factories announced cannot legally be included in the current talks, because they are joint venture facilities.

Ford has announced four future battery factories, including three joint ventures and a wholly-owned subsidiary that will use battery technology licensed from Chinese automaker CATL. Ford earlier this week halted construction on the final plant in Marshall, Michigan, due to union negotiations, Farley said.

“We can make Marshall a lot bigger or a lot smaller,” Farley said Friday.

GM is the only Detroit automaker with an operating, unionized combined battery plant — making it the first in the country to face this special negotiating dynamic and a historic plant to set industry standards.

This is a developing story. Please check back for additional updates.