Investor group urges Ford to address claims of ‘union avoidance’ at Kentucky battery plant

A nonprofit faith-based group that seeks to leverage its investing to advance human rights, racial equity and “the common good” is calling on automaker Ford to address claims of anti-union activities at the BlueOval SK battery plant in Kentucky.

The letter from Investor Advocates for Social Justice details the group’s concerns over “strong indications that BlueOval Kentucky is engaging in union avoidance activities,” ranging from disseminating “anti-union flyers and media” to the United Auto Workers (UAW) telling the Washington Post that anti-union consultants have been brought in to persuade workers against unionization. 

The UAW launched a campaign last year to unionize the BlueOval SK battery plant in Hardin County, and workers at the plant in January asked the National Labor Relations Board to hold a union election. The BlueOval SK battery plant, one of two planned at Glendale to produce batteries for electric vehicles, is jointly owned by Ford and South Korean company SK Group. 

The investor group is urging Ford to address the concerns in an annual shareholder meeting Thursday. 

“Companies have an obligation to respect human rights, including freedom of association and collective bargaining, and to extend this obligation to their business relationships, which include joint ventures,” the investor group wrote in part. “Failure to uphold these rights can expose investors to material risks, including operational, reputational, regulatory, legal, and financial risks.” 

The letter also noted concerns brought by a community group in Tennessee over a BlueOval SK electric vehicle and battery plant there urging Ford to sign an agreement ensuring the operation doesn’t harm the community environmentally or socioeconomically. 

The letter comes after the New Jersey-based Sisters of St. Joseph of Peace, one of the members of the investor group, tried to offer a proposal to be voted on at Ford’s shareholder meeting that would have requested the company’s board of directors adopt a “noninterference” policy for when workers seek to unionize at joint venture plants. The U.S. Securities and Exchange Commission granted Ford’s request to block the proposal from being voted on ahead of the meeting. 

Susan Francois, assistant congregation leader and treasurer of the Sisters of St. Joseph of Peace, in a statement said their Catholic community believes “it is both good business and the right thing to do to call on companies like Ford to respect human rights.” 

“We urge Ford to effectively and expeditiously address these issues, which are not going away just because the shareholders have been prevented from voting on it,” Francois said. “God expects the economy to support life and the livelihood of all, not the few.” 

A news release about the investors letters notes that taxpayers have spent billions supporting Ford’s joint venture. The federal government announced $9.63 billion in loans in December to the three BlueOveral SK battery plants. Tennessee approved $900 million in incentives while Kentucky is providing $250 million in public subsidies.

Mallory Cooke, a spokesperson for BlueOval SK, in an emailed statement said the company is “excited about our future and strive to maintain our direct relationship with our employees.” She said BlueOval SK supported federal law requiring a “substantial and representative” complement of employees have the opportunity to vote.

“We celebrate and empower each team member to define their own success by speaking for themselves,” Cooke said.

An email sent Wednesday afternoon to Ford requesting comment on the letter was not immediately returned. 

This story was updated with a statement from a BlueOval SK spokesperson.