Jim Cramer Warns Ford Could Impose Lockout As UAW Strike Enters Day 4: 'Playing With Fire'

As the ongoing strike by United Auto Workers (UAW) enters its fourth day, Ford Motor Company F, with the most UAW members among Detroit’s Big Three automakers, may resort to a lockout, warns CNBC’s Jim Cramer, CNBC reported.

Negotiations over a new labor agreement made little headway over the weekend. Cramer cautioned that UAW is “playing with fire” as Ford could become frustrated with union demands and lock out workers.

Last Friday, Ford temporarily laid off nearly 600 employees at its Michigan Assembly Plant, a result of the ripple effect caused by striking workers.

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The stalled negotiations occur as legacy players like Ford, GM, and Stellantis are racing to boost their electric vehicle production amidst a price war. Sales pressure and UAW demands could potentially force these automakers to consider moving certain operations to Mexico, a move that could affect both the workers and the companies.

Overall, approximately 12,700 UAW workers from Ford, General Motors GM, and Stellantis STLA walked out last week, following the expiration of the previous labor agreement.

Ford’s CEO, Jim Farley, expressed last week that UAW demands could bankrupt the company. The strike is being closely watched by workers across various manufacturing industries, as it could hasten the drive towards automation.

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