LOUISVILLE, Ky. (WDRB) — Ford Motor Co. is offering some workers at Louisville Assembly Plant unpaid leaves of absence in the coming months.
While one source indicated it's a possible consequence of the ongoing contract talks and selective strikes by the United Autoworkers union, the company said the leaves are not connected to the negotiations in Detroit.
“We are offering voluntary schedule adjustments at Louisville Assembly Plant as part of our normal course of business, not related to the UAW strike," Ford said in a statement, without elaborating.
The people said the union made a counter-offer to Ford that proposes a 25% general wage increase over the life of a new four-year contract and said that negotiations on Tuesday extended well into Wednesday morning.
The company is soliciting volunteers to take leaves in two-week increments, according to a form distributed to LAP workers earlier this week.
The offer was made to “final assembly” employees, which constitute about 1,600 of the roughly 3,200 hourly workers at LAP, according to a union source. However, it was not an open-ended offer, with Ford reserving the right to approve or deny each leave request depending on the plant's needs.
Louisville Assembly, which continues to operate as normal even as Kentucky Truck Plant is on strike, is slightly overstaffed, leading Ford to seek temporary leaves, according to the union source.
“Absenteeism is extremely low because everyone is on edge about a possible strike so we have an excess of people everyday,” the union source said.
The source added that some workers were rushing back from medical leaves to ensure their eligibility to receive an expected signing bonus from a new UAW contract with Ford.
The letter to employees says those who volunteer for layoff will not receive unemployment benefits or UAW-negotiated jobless benefits such as “short work week” or sub-pay. However, they will remain eligible for a contract signing bonus and holiday pay.
Louisville Assembly Plant produces the Ford Escape and Lincoln Corsair SUVs.
Even though it relies on body panels stamped across town at Kentucky Truck Plant, Ford has so far managed to keep production going at Louisville Assembly since Kentucky Truck went on strike Oct. 11.
