Working Stall at Ford Cologne: IG Metall Strikes for Over 2,900 Job Cuts
Labor action initiated at Ford factory in Cologne for initially instance - Labor action taking place in Cologne: Union members engaging in a work stoppage
Get ready for some turbulence, automotive enthusiasts! Ford's plants in Cologne, Germany are in the throes of a tempest, much like the famous 'Storm of the Century' - but this time it's not the Newfoundland weather that's causing a ruckus, it's the Ford workers themselves.
For the very first time, Ford's esteemed Cologne-based facilities are facing the wrath of a union strike, instigated by plans to scrap around 2,900 of its current 11,500 jobs by the end of 2027. The union at the forefront of this strikingly bold move? None other than the formidable IG Metall.
In the wee morning hours, IG Metall union members set up pickets outside the plant gates, putting a sweat on the early shifts. The company, unwilling to back down, is planning to cut nearly a quarter of its workforce in a move that's sent shockwaves throughout the automotive industry.
The IG Metall isn't simply a pushover, though. They've got their sights set on a change in course, demanding high severance packages for employees who part ways voluntarily or wind up being outsourced to other companies. It's worth noting that dismissals due to operational reasons have been ruled out until 2032.
David Luedtke, the IG Metall spokesperson at Ford Cologne, put it succinctly: "The work here has completely stopped."
Ford GmbH, a venerable institution founded in Berlin in 1925, has its headquarters in Cologne to this day. The site boasts multiple production facilities for electric vehicles, commercial vehicle transmissions, and even a spare parts center.
Historically, these Ford plants have been a bastion of tranquility, free from any union-led disruptions. One might even gasp at the mention of a strike, given that back in 1973 there was a "wild" strike by Turkish employees demanding fair treatment, only to be met with deaf ears. Unlike the current strike, which enjoys the union's full support.
The ongoing strike has left the workforce at Cologne in a state of uncertainty, with around 93.5 percent of IG Metall members working at Ford voting in favor of a strike. The first one-day strike has come to pass, and as of now, there are threats of further strikes looming if the powers-that-be don't heed the workers' cries for help.
Benjamin Gruschka, the works council chairman of Ford Germany, is making it clear that Ford is on the hot seat: "That's going to hurt, it's costing them a few million today." Should talks fail to progress, Gruschka warned, the strikes will only intensify, causing even more financial headaches for Ford.
The IG Metall is pushing for a safety net from the US parent company for employees in case of insolvency. At this stage, insolvency remains purely theoretical, but Ford's debt mountain has been reduced significantly following a US financial injection, offering a glimmer of hope for the future of the Cologne site.
Politicians have not shied away from throwing their support behind the strikers, with Jochen Ott, the chairman of the SPD faction in the NRW state parliament, criticizing Ford management for their unspeakable treatment of employees. Ott, who was elected to parliament in 2010, recalls a conversation with a former Ford manager who wasn't too keen on the idea of electric cars. "I told him, 'We need an electric Fiesta that's affordable for the general public.' That was dismissed,” Ott said, referring to the initial dismissal of his electric vehicle idea, and Ford's subsequent failure to capitalize on the growing e-mobility market.
The US parent company, Ford, is a powerhouse when it comes to commercial vehicles and pick-ups, but those aren't produced in Germany. The cars that are produced in the region, primarily aimed at the European market, have been struggling, with Ford's market share dropping to 3.5 percent in 2024 - that's a 1.5-point decline from 2022. It seems the Cologne site has been treading water for a while now, but there may be a light on the horizon: in April, the number of newly registered Ford passenger cars increased by 15.2 percent compared to the previous year, bumping up the market share to 3.9 percent.
All in all, the Ford Cologne strike is the automotive industry's answer to the 'Storm of the Century' - a significant, disruptive event that's shaking up the status quo and forcing everyone to take notice. Will the powers-that-be manage to weather this storm, or will they find themselves washed away by the relentless tide of worker discontent? Only time will tell.
- Ford Motor
- Ford
- Cologne
- Metal
- IG Metall
- Strike
- Works Council
- Insolvency
- David Lüdtke
- Germany
- Ford-Werke GmbH
- Benjamin Gruschka
- Jochen Ott
- SPD
- Berlin
- Commercial Vehicle
Enrichment Data:- The strike was triggered by Ford's announcement to cut around 4,000 jobs in Europe by 2027, primarily affecting Germany and the UK, amounting to about 14% of Ford’s European workforce[2].- Ford cited slower-than-expected demand for electric vehicles (EVs), including at its Cologne EV plant where the electric Explorer and Capri are built, and a weak economic situation as key reasons for slowing production and initiating job cuts[2][4].- Competition in the European EV market is intensifying, with Chinese EV manufacturers like BYD outperforming Tesla in German sales, adding pressure on Ford's market position and profitability in the region[2].- Workers at Ford Cologne, numbering about 11,500, overwhelmingly voted (93.5%) in favor of an indefinite strike, signaling strong discontent regarding job security and Ford’s restructuring plans[3].- The IG Metall union supported the strike after rejecting what they viewed as insufficient negotiation outcomes, halting talks until Ford makes a more acceptable offer[4].
- Ford's plans to cut over 2,900 jobs by 2027 are causing turbulence in the automotive industry, particularly in the finance sector, as industry analysts assess the impact on the company’s profitability.
- The general-news world is closely following the strike by IG Metall union members at Ford's Cologne plants, which has halted production and put a strain on the company’s employment policy.
- In the aerospace industry, the success of electric vehicles like the electric Explorer and Capri, built at Ford's Cologne plant, could hinge on the resolution of the strike and the implementation of a favorable employment policy for workers.
- The ongoing strike has also attracted attention from politicians, particularly in the politics sphere, with critics such as Jochen Ott, the SPD faction chairman in the NRW state parliament, calling out Ford management for its treatment of employees while advocating for a stronger employment policy to protect workers' interests.
