REPORT: Labor unrest in India to cause Ford to idle key NA crossover plant
Rico Auto Industries in India makes transmission parts for Ford's Flex and Edge, along with its upscale Lincoln MKT and MKX twins. Unfortunately for the Blue Oval, Automotive News is reporting that Rico's operations are in flux because of persistent troubles between labor and management. A few weeks ago, some of the supplier's workers went on strike after members were suspended and fired by management. On October 18, the striking workers marched to the factory and got involved in an altercation with "unidentified men" supposedly "acting at the behest of Rico Auto's management." During the brawl, a 26-year-old worker was killed.
In the meantime, Ford reportedly hasn't got the parts it needs to build the crossovers it makes at its Oakville, Ontario plant and will be forced to idle the key facility next week. Ford is watching the situation in India closely – if production isn't restored soon, the lack of parts could impact other plants in addition to Ontario and its 3,000 workers.
In the meantime, Ford reportedly hasn't got the parts it needs to build the crossovers it makes at its Oakville, Ontario plant and will be forced to idle the key facility next week. Ford is watching the situation in India closely – if production isn't restored soon, the lack of parts could impact other plants in addition to Ontario and its 3,000 workers.
[Source: Automotive News, sub. req'd. | Image: Simon Hayter/Getty]
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Reader Comments (Page 1 of 4)
DiRF 11:00AM (10/25/2009)
So if stuff like this keeps happening, and companies start worrying about outsourcing to India, does this mean I'll actually have someone who can speak English next time I call a customer service line?
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airswingman 11:13AM (10/25/2009)
yeh poor but still "democratic".
LOL no wonder China has 3times more GDP than India now
Brian 11:44AM (10/25/2009)
Yeah cause DICTATORSHIP IS TEH AWEZOME!! LOLz GULAGS!
airswingman 11:55AM (10/25/2009)
yeh DICTATORSHIP
eupatrid monopoly-capitalist group. Oh yeh learned how to work for and buy from u and we Flying Without Wings. LOL
Brian 12:12PM (10/25/2009)
What the hell are you going on about?
Sandeep 1:54PM (10/25/2009)
Wow, you people are racist. One factory on strike can be extrapolated to a whole country? Please, at least pretend to think before commenting.
paul34 2:35PM (10/25/2009)
Being of Indian descent myself and having visited the country, constant strikes are unfortunately an all-too-common occurrence. One little imagined problem and suddenly EVERYONE is on strike for a month. If you thought the UAW was bad, just look at many of the workers in India. It's ridiculous. They're can't work without striking at least once every few months.
Mehul 6:52PM (10/25/2009)
Oh PUHleeze... Like there have never been worker strikes in the western countries
daleam 8:22PM (10/25/2009)
"Sandeep - Wow, you people are racist. One factory on strike can be extrapolated to a whole country?"
There goes the throwing around of the dirty R word again. Please do not confuse simple ignorance, or bigotry with racism. These are not the same thing.
Sandeep 10:15PM (10/25/2009)
@paul34: Usually (from what I've seen with my time there), companies can replace labor relatively rapidly and divert the strike. Not sure what's going on with this particular supplier. Even when the locales we work in riot, it dies down in a week or two, and that's an entire town rioting, not a simple factory strike.
@daleam9: One of the Merriam-Webster definitions of racism: "racial prejudice or discrimination". That would be the definition I was going for. Bigotry would also apply, while I don't think sheer ignorance would be enough to make statements like that.
Monica Dickey 2:00AM (10/26/2009)
Hey they speak english in India, that's why they put the call center there! :P
daleam 2:35PM (10/26/2009)
Sandeep - Where was there any reference to race in any comment? Just because someone makes a reference as a blanket statement to an entire country does not make it racist. What if this had been about the UK? Check your own comment for the definition you provided. It clearly says RACE.
ropeburn 11:05AM (10/25/2009)
holy crap.... labor vs management and someone got killed.
I believe in fighting and screaming for what you believe in
and for the right thing...I'd put myself in danger for it.... but a labor dispute?
I bet we'll get more details soon about why the workers went on strike
and how somebody got killed.... was it a riot.... demonstration?
a few workers half a world away get fired and a week later
Ford has to idle an entire PLANT because if it! WOW.
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bh 11:24AM (10/25/2009)
Ford has violent labor riots in its own history. See http://en.wikipedia.org/wiki/The_Battle_of_the_Overpass , http://blog.ktnxbi.com/wp-content/uploads/2008/10/pulitzer-1942.jpg
Farmboy 12:45PM (10/25/2009)
@bh So common during the era of The Rise of the Union. Not the most pleasing times in America, but one of the more productive of our times.
farmer0904 11:16AM (10/25/2009)
Shame on ford for having any jobs outside the USA ! you get what you deserve Ford or lol you get what you pay for !
Bring those jobs back to the usa ford
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fixitfixitstop 12:00PM (10/25/2009)
What decade are you in?
Tim 12:21PM (10/25/2009)
Yes, because American workers would never strike...
Jimbo 12:24PM (10/25/2009)
yeah, heaven forbid a global company use global resources.
psarhjinian 2:44PM (10/25/2009)
Did you know the Flex, Edge and MKX are made in Canada? How about the Crown Vic? The Camaro is Canadian, too, as is the Impala. Oh, and the 300C, Charger and Challenger. And the Caravan.
Did you know the Fusion is Mexican? So are some of GM's trucks and SUVs.
Meanwhile, the Camry is built in Kentucky and qualifies as a domestic car, far more than many other supposed domestics. For shame on Toyota for building a car outside of Japan.