Ford Motor Co. has confirmed plans to cut production and temporarily lay off more UAW members at the Chicago Assembly Plant.
A UAW local official at the huge Illinois factory had urged workers to be careful with their money and prepare for the wage loss caused by a global supply chain problem, the Free Press first reported Thursday. The shortage is tied to manufacturing disruption worldwide because of COVID-19.
This latest confirmation from the Dearborn automaker now officially totals four states with layoffs or shift reductions triggered by a shortage in semiconductor chips:
• Dearborn Assembly Plant, which makes the F-150 pickup.
• Kansas City Assembly Plant, which makes the F-150
• Louisville Assembly Plant, which makes the Ford Escape and Lincoln Corsair
• Chicago Assembly Plant, which makes the Explorer, Police Interceptor and Lincoln Aviator
At the Chicago Assembly Plant, two shifts will be laid off next week, said Kelli Felker, Ford global manufacturing and labor communications manager. The plant, which employs 5,300 hourly workers, will go down to one shift.
When the Free Press reported news of the Chicago situation on Thursday, Ford said the decision wasn’t final yet. It is now.
A letter circulated among Chicago Assembly workers signed by UAW Local 551 Chairman Coby Millender said the plant had been able so far to avoid shutdown but the situation became dire.
“The company has informed us that beginning next week, they want to have B and C crew laid off initially for one week with a strong potential for additional weeks. It’s totally based on how soon the supplier resolves this issue,” Millender wrote. “I just wanted to make you aware 551, so that you can begin to plan accordingly. Be wise with your finances.”
Laid-off UAW members will get about 75 percent of their gross pay, which is part of the labor contract.
U.S. workers
This shortage of semiconductor chips is affecting auto production globally because chips are used for automation, electrification, digital connectivity and security — everything from computer management of the engine to driver-assistance such as emergency braking. There is also stiff competition for the product from outside computer manufacturers.
