Early last month, Ford executed a rather shocking move by terminating its contract with the transport company Jack Cooper, with which it had previously enjoyed a relationship with for roughly 40 years. It’s unclear why Ford made this particular decision, as it doesn’t comment on contracts or relationships with individual suppliers, though some speculated it could have something to do with the fact that most Jack Cooper employees are part of the Teamsters union – allegations that The Blue Oval has denied. Now, however, a pair of U.S. Senators are asking Ford to provide some sort of explanation for this move.
As first reported by the Detroit Free Press, those Senators – Roger Marshall of Kansas and Josh Hawley of Missouri – wrote a letter to Ford CEO Jim Farley demanding an explanation for the automaker’s decision to terminate its contract with Jack Cooper, which wound up closing one of its plants and laying off 89 workers as a result of that move – with more fallout expected to occur at other locations, too.
“We expect Ford to address this matter with the seriousness it warrants and provide a detailed explanation for its actions, not only to the affected workers but also to their families and communities who are now burdened with uncertainty and hardship,” the letter reads. “This abrupt decision threatens the livelihoods of nearly 2,000 dedicated union workers and their families, casting a dark shadow over Ford’s claimed commitment to ‘serving all of our stakeholder groups.’ We request, at a minimum, that you confirm Ford Motor Company intends to fulfill its legal obligations with respect to termination costs, pursuant to all applicable laws, resulting from Ford’s termination of its Jack Cooper contract.”
Ford was Jack Cooper’s second-biggest customer behind only General Motors, so losing that particular contract created what it calls an “existential crisis” for the company. In addition to closing its location in Wayne, Michigan and laying off those 89 workers, Jack Cooper also laid off around 400 employees at its Kansas City, Missouri facility last month, and other job cuts are quite possible as well.
Comments
I would like ford to explain what they plan on doing to rectify to 10r80 crisis taking place all over America ?
Speaking of Ford stepping up to the plate and doing something about the 10R80 10 speed transmission problem , How about the NHTSA stepping in before more Americans and injured and killed by these millions of fords. Or does ford have a cozy relationship with them ?
NHTSA will be doing nothing they fired all the people in that Gov office. Musk does not want a NHTSA he do his own regs.
It’s none of your business what Ford does. It’s probably because of the 💩 union. Ford needs to get away from union workers
Ford is a private company, not governmental. American companies do not need to ask politicians for permission for their decisions! Politicians can observe that companies follow contracts but they cannot have any influence in those matters.
Doesn’t the workers work for their union. That’s why they pay dues, maybe the union can explain it better to them. The union can take care of their workers. Ford owes them nothing along with the government