UAW votes down Ford labor contract
Filed under: Company News, Ford Motor Co.
The astonishing turnaround at Ford (F) has been built on three legs. The first was the company's decision to take in over $20 billion, pledging most of its assets, before the recession began in earnest. It had enough cash on hand that it did not have to turn to the government when things got bad. The second was that Ford brought new, fuel-efficient cars like Fusion and Focus to market quickly, offering cost-conscious buyers a set of U.S. alternatives to foreign vehicles. The third was that Ford radically cut costs, and many of these expense reductions were done with the help of the UAW.
Perhaps the UAW members think that Ford has prospered, at least relative to other U.S. car companies, at their expense. Ford recently negotiated a new contract with union representatives that would have allowed it to cut costs further. Over the weekend, the rank-and-file voted it down. The new agreement was essential to America's No. 2 car company because it is still at a labor cost disadvantage to Chrysler and GM.
Ford had offered workers a $1,000 bonus to ratify the new deal, but the contract would have frozen entry-level pay and limited the union's ability to strike.
The union may elect not to come back to the bargaining table. Ford cannot afford to press the issue because a strike would put its progress at picking up market share in the U.S. in jeopardy.
With their labor concessions already in hand, GM and Chrysler have an advantage over Ford for the first time in a long time.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 3)
11-01-2009 @ 9:41PM
Don G. said...
I hope they all loose there Jobs just another cluster of allowing the UAW to be so powerful.If I was CEO I would offshore All the US jobs close Shop then they will have something to cry about.
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11-01-2009 @ 11:16AM
Ken said...
With Any Luck At All, the UAW will be able to Bankrupt Ford Too! GM & Chrysler, Been There! Done That! AND, now GM & Chrysler (Fiat) have the Advantage! Strange World! Will the UAW Never Learn???
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11-01-2009 @ 6:19PM
jerry mcdonald said...
we still have bullets and gonads,something no one else in this country has.You keep electing these treasonist bas-ds to government,your old lady will earn the living for peanuts.Since all you world economy buffs understand free trade and cheap labor, throw in your daughter too.Ignorance is certainly bliss and you are in heaven,with hades stearing you in the eyes.Good luck with your future.
11-01-2009 @ 6:39PM
Salisbury said...
You are 100% correct. The UAW is the worst thing that ever happened to the auto industry.
11-01-2009 @ 11:16AM
D. Webb said...
In the new world of a global economy, this is a fight the UAW can't win. They can stall, but it will only empower Ford to begin full scale production in China and elsewhere to cut it's union workers. Mulitnational manufacturing corporations don't need American workers any more. In fact, American workers are an unnecessary and costly liability to them.
Unions are dying hard in the USA but they are on the way out. There's no money or sense for business or government to embrace them in "the new world order". They have become obselete and destined to fail. There time has passed.
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11-01-2009 @ 11:19AM
Tony Ramos said...
The UAW should count their blessing, because they have a good paying job. Sure over the years have given concession, but if they go on strike please don't ask for help from us the Tax payers. Because many of the tax payers are not making half of what this UAW workers are making, and the UAW will be trying to get public support by saying today is my job tomorrow will your.
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11-01-2009 @ 11:30AM
snofer said...
After what happened to GM and Chrysler, I cannot believe the UAW would torpedo this contract. One has to conclude its membership isn't very bright. Obama should say something critical of the UAW, as President Kennedy did years ago about the steel companies when they did something to hurt the economy, but he won't, of course. Maybe Ford should just fold its tents.
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11-01-2009 @ 11:46AM
Dan said...
Ford UAW workers are idiots and idiots will ultimately die. They should volunteer to take another paycut just to protect their jobs but they are to stupid to realize this.
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11-01-2009 @ 11:54AM
widollar said...
Given the vague understanding of business by the rank and file of Ford's auto assembly workers, most of which maybe have a high school education, soon they will not have a paycheck from Ford Motor Company. Once they fall into the toilet, and are under water with their monthly bills, including mortgage payments, auto loans etc. they will feel like they are ALL innocent victims. When in fact they are basically greedy little hogs at the trough!
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11-01-2009 @ 11:55AM
Steve said...
Say goodbye Ford! I love my Prius. American car companies are passe and have nothing more to offer the world. Advance, migrate, or die! They won't advance; there is no place to migrate, so they will likely die.
This is an example of people locking in on one job at a low functioning skill-level for their entire lives. No place to go now. I wonder how much Detroit would cost--the whole state.
No wonder the American worker wants to go back to prehistoric conservative values, rather than advance into the 21st century.
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11-01-2009 @ 12:03PM
Chip said...
Would you rather have a job or not have a job? Seems fairly straighrtforward, guess the UAW workers really don't get it. If I were buying an American made car today, it would be Ford, I believe their products are a good blend of styly and economy. Too bad the workers aren't as smart as the people who somehow saw this coming and dealt with it in advance.
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11-02-2009 @ 8:07AM
Pat said...
Yes, the people who planned ahead when they saw this mess coming so they could save Ford and the jobs of all those union workers. Just plain GREED as these unions usually pull from the hat at the apex. They are just plain stupid now just as Ford is coming up off the bottom.
11-01-2009 @ 12:23PM
kevin said...
There they go again... You'd think they would come up with a better way to do things.
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11-01-2009 @ 12:33PM
Phil said...
Here come the so called ANAL-YST in America LOL Ranting about UAW ? For what reason i have no clue! It seems America is to stupid to see that the Bush recession was caused by big banks and wall street and two open ended WARs ! Not unions ! Seeing that 93% of the US workforce is NON UNION LOL Are you idiots better off now than you were 8 yrs ago? And if you pukes have not noticed from 2006 on, the decline of the American auto industries along with the wall street meltdown that took all your 401Ks to the trash ? LOL And threw this economy into the trash! The USA is a 2/3rds consumer economy ! Stagnant wages and the decline of good paying jobs is a HUGE part of our economy ! But hey? anti union Americans are stupid to start with ! They truly have no clue ? Just jealous little republican anti union pundits and armchair ANAL-YST lol .
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11-01-2009 @ 12:41PM
jh333 said...
Spoken like a true Socialist............. Have you ever had a original thought or do you just follow Obummas every step?
11-01-2009 @ 1:13PM
Jmaltus said...
Phil, you just don't get it, do you. It seems all you know is LOL, George did it, and let the government do it. I feel sorry for you.
11-01-2009 @ 11:19PM
nick said...
This mess was caused by government over the last thirty years and Dems have a whole lot of blame as well. This country can not continue to pay the way for those too dumb or too lazy to work. You think this is bad? Let china stop buying our worthless T bills we sell to finance the government programs. Buy gold and keep it hidden. Also by a litle place in central america.
11-01-2009 @ 12:48PM
Phil said...
The real socialist are the COMMUNIST CHINESE at your local Communist China mart of America ? They want your dollar but not give you a job ? LOL Look at the shelves of the communist China marts of America. But then when a republican con-servative talks freedom ? Its two open ended wars a 10 trillion $ and thats freedom ? But try to spend just 20 % 1/5th on Americans for unemployment healthcare schools or infrastructure in America you same con-servative republicans will call that socialism ? LOL Go figure!
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11-01-2009 @ 12:53PM
jh333 said...
Yup, you answered my question.
Should we address you as Comrade Phil ?
11-01-2009 @ 1:01PM
william wolfe said...
STRIKE!! That'l showem You dumb UAW jerks will never learn!! from a little republican anti union o=pundit and armchair TOYOTA driver!!
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