Labor violence at a supplier in India idles Ford’s Oakville assembly plant

Article by Christian Andrei, on August 27, 2010

Ford's production of crossover vehicles at its Oakville, Ontario assembly plant will be halted this week due to a shortage of transmission parts.

Spokesman Todd Nissen said that the shortage was a direct result of the labor troubles that had been plaguing Rico Auto Industries, Ford's supplier in India. The assembly plant manufactures the Ford Edge, Ford Flex, Lincoln MKX, and Lincoln MKT.

Ford continues to closely monitor the situation especially since it could affect other Ford plants. Rico Auto Industries is located in the industrial city of Gurgaon, about 30 miles outside of New Delhi.

Reportedly, the labor unrest began when a Rico employee was killed on Oct. 18 during a clash between two groups of company workers.

A one-day strike last week had affected the operations of more than 70 factories. The shutdown of the Oakville assembly plant will affect 3,000 workers, according to Canadian Auto Workers union local president Gary Beck.

The union and Ford had been in formal contract talks with regards to manufacturing costs. The last time that they formally met was in September and since then have only had informal talks. The two parties will meet again this week.

Topics: ford, india, factory

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