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Workers at Ford's Cologne plant prepare for an ongoing strike

Ford Workers in Cologne Prepare for Indefinite Strike

Ford's iconic blue emblem. Foreboding atmosphere at Ford Germany, as depicted in the photograph.
Ford's iconic blue emblem. Foreboding atmosphere at Ford Germany, as depicted in the photograph.

Breaking Down the Ford Saga: Cologne Workers' Unlimited Strike Threat

Ford employees in Cologne prepare for an extended work stoppage - Workers at Ford's Cologne plant prepare for an ongoing strike

In the automotive capital of Cologne, Germany, things are heating up between Ford and IG Metall, the metalworkers' union. With 93.5% of IG Metall members employed at Ford in the city voting in a recent ballot to employ "all union means, including strikes," the stage is set for a showdown between labor and management.

David Luedtke, IG Metall spokesman at Ford Cologne, expresses the workers' readiness for action. "The people in the plant are behind us," he asserted. After the clear vote, the union is weighing its options, with strikes potentially starting next week. The extent of these strikes is presently uncertain, but they're expected to be more intense and prolonged compared to previous warning strikes in March and April.

The union's determination is palpable, with Kerstin Klein, first chairwoman of IG Metall Cologne-Leverkusen, stating, "We are determined to carry out this mandate of our colleagues." She went on to warn Ford's management that a drawn-out labor dispute could harm Ford's commercial vehicle business in Europe, as well as damage the company's image.

Remarkably, this would be the first time strikes at Ford in Cologne follow a ballot. Previously, direct agreements between employers and unions were reached after similar ballots. Ford employs around 11,500 people in the city, most of whom are union members.

The dispute arises as Ford's German subsidiary struggles to make its investment in electric vehicle production (nearly €2 billion) pay off. Sales of two electric car models produced in Cologne have been sluggish, with the German business continuing to operate at a loss. Ford plans to cut 2,900 jobs by the end of 2027, but it's dependent on agreement from the works council, as a previous agreement from 2020 still applies until 2032, which rules out dismissals for operational reasons.

Verdi, another union, has demanded high severance payments for employees leaving the company or whose business area is outsourced to external service providers, as well as financial protection for the remaining employees in the event Ford plants go bankrupt. This possibility has become more realistic following the US parent company's withdrawal of its guarantee.

Negotiations for a new social collective agreement have reached an impasse, leading IG Metall to call for a ballot and receive the backing they hoped for. The union can now call for strikes—either limited or unlimited. In response to the ballot, a Ford spokesman noted that the company respects the right to strike and continues to rely on constructive negotiations.

However, IG Metall has announced that negotiations will be suspended until the employer presents a settlement-ready offer. The current labor dispute between Ford and IG Metall could have several implications for Ford's commercial vehicle business in Europe, including production disruptions, cost and efficiency concerns, negative market perception, strained regulatory and government relations, and technology transition challenges. Resolving the dispute swiftly is essential to minimize disruptions and maintain competitiveness.

Additional Insights:This labor dispute unfolds against the backdrop of the global transition to electric vehicles, which poses unique challenges for legacy automakers like Ford. The FT reports that the company is expected to announce up to €11 billion of cost savings over the next five years as it focuses on electric and autonomous vehicles [4]. The drawn-out negotiations in Cologne could be a symptom of the broader challenges faced by Ford in adapting to the new era of mobility.

Sources:[1] https://www.reuters.com/business/autos-transportation/ford-workers-approve-strike-vote-2025-04-25/

[2] https://www.ft.com/content/d3da3fb3-8c8c-4488-b5b0-eb4939d549d1

[3] https://www.autocar.co.uk/car-news/new-cars/ford-st-joseph-plant-transformation-cost-3bn

[4] https://www.ft.com/content/25b917b5-df38-49dd-9f65-5fc87f70f9af

  1. The ongoing labor dispute between Ford and IG Metall in Cologne, centered around employment policy, could have significant implications for the automotive industry, particularly in terms of production disruptions and negative market perception.
  2. The union's employment policy vote, combined with the industry's shift towards electric vehicles, underscores the challenges that legacy automakers like Ford face as they navigate the transition to a new era of mobility, often requiring considerable financial resources (finance) to adapt.

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