UAW expands auto strike to Ford’s biggest plant in a surprise move. The United Auto Workers’ four-week targeted strike against the Detroit Three automakers saw a sudden uptick on Wednesday as they shut down Ford’s (F.N.) largest facility worldwide and abruptly stopped production of profitable pickup trucks.

The No. 2 American manufacturer allegedly failed to advance in contract negotiations, leading 8,700 union workers at Ford’s truck factory in Kentucky to walk out. The union seeks greater salaries, the elimination of a two-tier wage system, and the expansion of unions to battery facilities at all three businesses, even though automakers have more than quadrupled initial salary rise offers, agreed to boost wages in line with inflation, and enhanced compensation for temporary employees.

Ford has suffered a blow due to UAW President Shawn Fain’s decision to shut down the manufacturing lines that produce Ford Super Duty pickup trucks, Lincoln Navigator big SUVs, and Ford Expedition large SUVs. This move could quickly reduce Ford’s full-year profitability.

A sixth of Ford’s total yearly automobile sales, or $25 billion, come from its most profitable division, the Kentucky truck factory. After finishing 0.4% higher on Wednesday, the company’s shares dropped approximately 2% in after-hours trade.

At a meeting with Ford on Wednesday at 5:30 pm E.T. (21:30 GMT), a Ford official said Fain and other UAW representatives sought a new offer, which Ford did not have. Fain reportedly remarked, “You just lost Kentucky Truck,” according to the Ford representative and a union source who spoke anonymously because the talks are private. All you have for us is this? More valuable than this are the lives of our members and my handshake, said Fain, according to the union source.

Ford claimed that the choice was “grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through ‘reputational damage’ and ‘industrial chaos.'”

According to statements provided by the automakers and the UAW, General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI), whose salary and benefits packages fall short of Ford’s, should take note of the Kentucky strike.

On Friday, Fain declared that he was prepared to attack the G.M. assembly facility in Arlington, Texas, which produces the Cadillac Escalade, the Chevrolet Suburban, and other huge, expensive SUVs.

The automaker’s Ram pickup vehicle facilities in Sterling Heights and Warren, Michigan, and two Jeep SUV factories in Detroit are high-profit targets at Stellantis. Fain reported on Friday that Ford had increased its projected salary increase to 23% until early 2028. People familiar with the idea indicated that when combined with the suggested cost-of-living adjustments, workers could see pay increases of around 30%.

Ford had been anticipated to make an even better offer, but the UAW offered the same one on Wednesday, according to the union source. The Ford representative said that earlier in the day, the corporation and UAW bargainers had been attempting to settle their disputes about retirement security and union involvement in the firm’s future battery operations.

Fain has been deciding on fresh Friday walkouts at the Detroit Three plants in video addresses for the past four weeks. Fain has often stated that his goal is to keep the manufacturers off-balance. In response to the statement on Wednesday, Fain stated, “We had to decide to do things differently this way. “If the companies aren’t going to come to the table and take care of the membership’s needs, then we will react.”

Only 22% of the 150,000 UAW employees at the Detroit Three automakers remain on strike, even after Wednesday’s walkout. However, hundreds more non-strike facility workers were laid off when automakers claimed that the walkouts rendered their employment superfluous.

The Kentucky strike will strain Ford UAW members outside the large facility close to Louisville. Employees at a dozen more Ford sites that provide the facility with engines, gearboxes, and other components may be placed on leave. Additionally, suppliers of the plant’s trucks and SUVs may have to lay off temporarily staff.

The Kentucky facility “is a very profitable plant, and because there was no notice at all, it will be particularly disruptive,” said Harley Shaiken, a labor expert at the University of California, Berkeley. This is a significant move that will affect the bottom line, Shaiken stated. “This suggests that the union might take this strike to the next level at any time, day or night. For all sides, this is unknown terrain. Ford has never encountered this technique, and neither has the union.

G.M.’s surprising readiness to permit employees at joint venture battery operations to be covered by union contracts was one reason why the UAW postponed further strikes against the Detroit Three auto plants on Friday. The specific parameters have been under discussion this week between G.M. and the UAW.

According to reports, the UAW and Stellantis will engage in another significant round of negotiations on Thursday. Between October 24 and October 31, the Detroit automakers will disclose their third-quarter financial results. The UAW may exploit the anticipated strong earnings to support their demand for a more lucrative deal. The union had called for walkouts at five assembly facilities, including two Ford assembly plants, at the three businesses, and 38 component depots run by G.M. and Stellantis before Wednesday’s statement by Ford.

Separately, BlueOval SK, a battery joint venture between Ford and SK On in South Korea, announced on Wednesday that it will increase pay for select employees at its operations in Tennessee and Kentucky. The pay increase would range from $24 to $37.50 per hour, depending on experience. However, the company did not provide specifics on the prior pay.