Ford Is Moving South of the Border

Power to the unions… and you lose your job.

We saw it in the film called American Factory. The union had negotiated a generous compensation package for employees at a General Motors plant in Dayton, Ohio. The company proceeded to shut down the plant. Eventually it was bought by a Chinese company Fuyao glass, which offered starting salaries that were about half of what the union had promised.

Eventually, employees had the opportunity to vote for a union, and they voted it down. Better to make less and to have a job than to join a union and be unemployed.

During the Trump administration Ford Motor Company had promised to invest in a new assembly plane in Ohio. Now, the defiantly pro-union Joe Biden is in the White House, and, what do you know, Ford is moving its plant to Mexico.

Zero Hedge reports:

The Ford Motor Company has reportedly shifted a $900 million investment for an Avon Lake, Ohio assembly plant towards a site in Mexico, according to the United Auto Workers (UAW) union.

According to a letter sent to Ohio Assembly Plant (OHAP) employees, where around 1,740 Ford workers manufacture F-650 and F-750 medium duty trucks, UAW official Gerald Kariem claims the company had committed to investing $900 million into the project in 2019, according to Breitbart.

Obviously, it is not very surprising:

Another commenter wrote: "Not sure why this is such a surprise. They have been sending high pay supporting white collar jobs from engineering & purchasing for 3 years all with the goal to move production to MX. Quite frankly, at the rate they are going, not sure who they think will be in the new Dearborn campus. They are planning and staffing a huge tech campus in MX."

That said, some blamed the UAW - with yet another commenter writing: 

"If the UAW aka 'U ain't working' wasn't so greedy and demanding every handout from the company or go on strike this doesn't surprise me."

According to the UAW, Ford executives are backing out of the commitment and will divert the funds to Mexico.

Well, at least they are not moving to China. Yet.