Ford Motor to recognize UAW at the new Michigan battery plant if most workers sign cards

Yesterday, February 13th, major carmaker Ford Motor Co. announced plans to create a new electric vehicle battery plant in Michigan. To do this, the company said that it would invest $3.5 billion, essentially betting that building batteries in the US would help both it and its Chinese partner, CATL, with attracting US customers to embrace a lower-cost tech, which was pioneered in China.

Last year, Ford announced plans to start using LFP batteries, made in China by CATL, in some of its car models. This includes Mustang Mach-E electric SUVs, as well as the Ford F-150 Lightning pickups, which are being sold across North America and Europe.

Now, the company’s plan is to build the battery plant near Marshall, Michigan, and the plan depends on a judgment that faster recharging and lower cost will be attractive to US customers, which also includes commercial fleet buyers. The plan has a chance at being successful if the buyers decide that they are willing to accept the limits of LFP batteries in exchange for the other benefits that come with them.

Ford to recognize UAW under certain conditions

But, more than that, Ford Motor also agreed to recognize the United Auto Workers (UAW) at the new Michigan battery plant, provided that a majority of workers sign cards.

This is important to the company, as the card check process will allow the majority of the plant’s hourly workers to sign cards supporting the union. Once certified, an election would no longer be required.

The UAW has seen great success in attracting workers. Two months ago, in December 2022, employees of General Motors-LG Energy Solution Ultium Cells battery cell factory, located in Ohio, overwhelmingly voted in favor of joining the UAW. However, Ultium decided not to accept the UAW’s proposal to use card checks in the plant.

Ford, on the other hand, appears to be willing to accept the idea. The company is putting a lot of hope into its new battery plant, as it intends to use manufacturing in America to get closer to battery independence.

However, the company’s decision to rely on a Chinese technology partner comes as a risky move, and the firm hopes that producing LFP batteries within the country would help overcome the fact that it works with a partner from China. Furthermore, building batteries in Michigan will also grant the company a shot at significant US battery manufacturing subsidies. With their help, the firm could end up hitting its goal of 8% profit margins on its EV operations in the next three years.

Ford VP Lisa Drake commented on the announcement, stating that the Michigan plant represents a substantial step in the path to affordability.