Ford will demand more from UAW than GM
It wasn't easy, but it looks like General Motors will have its new contract ratified by the UAW by October 10th. We expect the UAW to start proceedings with either Ford or Chrysler as soon as this Monday, but Ford has apparently made it known that it needs more concessions from the union than were given to its cross-town rival GM. BloggingStocks is reporting the UAW president Ron Gettelfinger knows this, saying that the deal he struck with GM will be a "rough template" for deals with Ford and Chrysler. Ford has made it known that it needs deeper cost costs, up to a 30% cut in labor costs specifically, than those in the UAW's deal with GM. This likely means that Ford's contract with UAW may include even lower wages, smaller or no signing bonuses at all, and perhaps a significantly smaller contribution to a UAW health care trust, called a VEBA, that is the cornerstone of the GM contract. Ford is responsible for the health care of fewer active and retired UAW workers than GM, but we're betting that if a VEBA is part of its deal with the UAW, Ford will be contributing less per worker than GM. Either way, the next round of negotiations, be they with Ford or Chrysler, will be even more brutal than the first, which resulted in a strike. GM could handle a short strike, but we're not so sure that Ford can. [Source: BloggingStocks]
Reader Comments (Page 1 of 2)
lefty551 7:21PM (11/18/2008)
What is the name of the program where UAW workers got paid to come to work and do nothing? There was a big articla about it in the WAS a few years ago - and it had a specific name but I can't recall it. They showed up, sat around and played cards and drank coffee all day, and went home, and got their full wages. Can anyone tell me what that probgram was called? i know it had a specific name.
Thanks.
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JW 5:50PM (9/29/2007)
I say good luck on that one Ford.
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MKIV 9:29PM (9/28/2007)
Good for Ford. I hope Ford will set the standard and get rid of the union or at the very least pave the way.
Go Ford!!!
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Jimbo 10:52PM (9/28/2007)
My money is that the new Chrysler will finally kill the parasite. Now that they are a private company and don't have to worry about shareholders, I think they'll tell the UAW to stick it.
olddavid 12:21AM (9/29/2007)
Why the antipathy to the unions? Do you really think corporate goodwill is sufficient for worker compensation? What would you say if, once the unions are gone, they unilaterally declare no benefits and 35% pay cuts? PanAm did this, and guess what? They still went bankrupt. People have literally given their lives for the gains that today's workers enjoy, including the previous commentator. If you think Cerberus wants a political fight on the eve of an election, you are sorely misinformed. Particularly since it looks like a change of party is going to take place in the White House. Try to at least respect the forerunners who got you a 5 day, 40 hour week, social security, unemployment comp., workmen's compensation, etc. etc. These were not granted by the benevolence of the corporate factors. Your anger is curious. Envy, perhaps?
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Jimbo 12:54AM (9/29/2007)
It's not that I don't respect unions. I just don't respect THIS union. Unions have served a valuable service and we now have many, many laws to protect the worker from the abuses you mentioned.
The UAW has become corrupt. They feel that they shouldn't have to contribute to their own health insurance, like almost every other worker in the country has to do. They feel they should get paid to sit around doing nothing after they got fired (the Job Bank). They feel that they are entitled to >$50,000/year with little or no education and a guaranteed cost of living adjustment. If a company needs to trim their workforce, they have to offer additional incentives for the UAW workers rather than just firing them like happens at almost every other job.
Envy? Maybe a little; who wouldn't with perks like that? But mostly, I'm a realist. No company can sustain themselves by offering their employees with perks like that, even if they "promised" to.
You could argue that maybe the GM, Ford, and Chrysler execs should take a cut in pay and perks as well, and I wouldn't disagree one bit. But seriously, the salaries of the handful of execs is tiny compared to the grand total paid out to the rest of the employees.
GOKARTN 2:24PM (9/29/2007)
wha-wha-what!?
Most people today do not get 40 hour work weeks. They have to work evenings, weekends and come to the office park at the butt crack of dawn to stay employed. For this they don't get overtime pay and they do not get anything near what the UAW workers get in benefits. So in the end, most Americans see UAW workers as having less skills and education, work less, yet get paid more, have better benefits and even have "employment guarantees". Then these freakin crybabies and their Democratic enablers expect the rest of us to feel sorry for them.
As far as job security guarantees which made them strike in the first place, who the hell gets that? If my company is not making money and losing market share, it can not keep as many people employed. What rock is the UAW living under where they can not understant those simple economics?
It is time that these UAW workers have to get educated, gain skills and actually have to work to keep their jobs and work for the betterment of the company that pays them, like the rest of us.
Kumar 9:22AM (9/29/2007)
Those forerunners that blazed the trail are all dead or way up there in years. The current crop of unioners think that blazing a trail means filing a greivance over anything the threatens cushy overtime and other frivolous perks.
All you need these days to stand up for your rights is a good money grubbing lawyer.
MKIV 10:18AM (9/29/2007)
Jimbo,
I hope they cut the pay by more than 35%. More like 50%. Most of the jobs the auto workers do is skill less work that anyone can do. I'm a firm believer you should only make what you deserve. There is no reason in the world that one should get paid $30-50 to tighten a bolt.
If you want to make more money instead of unions saying what one should get paid try getting some skills, work harder, get an education. Most of us had to do it why not the auto workers.
olddavid 1:06PM (9/29/2007)
I see, since they are smart enough to get their piece of the pie, and you aren't, the UAW should be brought down to your level, instead of vice versa? Under your theory, you'd better get ready to live on 10 won a day, as that is about the going rate for a chinese peasant laborer. You show your own lack of historic knowledge concerning the union movement. It started in the 1800's in America, so you 're right they're mostly dead now, so I guess we'll have to start the fight all over again. Read a book, put down the Xbox, read the voter's pamphlet, and help your fellow Americans maintain their standard of living. You may not realize it now, but your children will thank you.
Jimbo 2:31PM (9/29/2007)
Smart enough? Any group of morons can unionize and hold the company hostage. In fact, morons are the ones most likely to unionize because of herd mentality. They can't think for themselves or refuse to. If the membership of the UAW thought for themselves, they'd realize that their leadership is leading them off a cliff. And like lemmings, they're jumping along with them. They'd realize that they are undoing the good deeds that their union grandparents worked so hard for.
Heck, it wouldn't surprise me if the UAW leadership know they're killing the union. It's clearly the will of their constituents and if they don't follow it they'll just be replaced with someone who will. Ford can't afford to make even the generous deal that GM reached; Chrysler no longer has to. Cerberus is all about making money and they know that there's thousands of unemployed people in the Detroit area that would be happy to replace the UAW workers. It could be the best thing to ever happen to the economy of Michigan.
JN 12:50AM (9/29/2007)
Chrysler's going to have a strike. Count on it. Those who were there two years ago when Gettelfinger and Company screwed them over by not giving the same concessions that GM and Ford got are going to remember that experience.
I look for the company to take a hard-line stance, and that's going to lead to the walkout to end all walkouts. That will hurt temporarily, but Chrysler is going to end up the winner. The UAW will come out limping and bloodied.
Ford, on the other hand, doesn't have much left to give. That much is painfully obvious. I don't expect a strike there. I really look for them to catch a break this time around.
I don't harbor any ill will toward the UAW, but this year, the stakes are different than they've ever been. We're going to see things a whole lot differently once all of the negotiations are over. Mark my words on that.
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Patriot 10:06PM (10/01/2007)
Ford lost money to the tune of 5 billion last year and still gave out bonuses.......... How do you explain that.
Barney 3:15AM (9/29/2007)
Maybe Bush will let the three hire Chinese labour from China and save the costs of importing cars. The profits will be unprecedented. He could dismantle the right to unionize and the factories could set up flop houses. The railways did well with the plan.
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whofan 4:17PM (9/29/2007)
If George Bush had any kind of a domestic policy maybe he would dismantel union labor. I hope people get out and vote in the next election.
whofan 5:59PM (9/29/2007)
I will add I`m pro union but the UAW gives unions a bad name. Unions are good they give the working man a voice. Some bosses play favorites. so they legitimise unions.
a2jack 1:04PM (9/29/2007)
Ford can afford a strike, in fact they will welcome it.
I came across another abandoned factory parking lot way out in the country NW of AnnArbor... Packed with new unsold Fords.
The big 2.8 has lots of these parks all around the Detroit area.
A2jack
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olddavid 1:13PM (9/29/2007)
Ford can afford a strike? With the stock at $5, and the family under no illusions that their dividends are coming back anytime soon, and you think they will let them walk? We are seeing the fruit of the lack of investment in our education system. I will mark anyone's words, but this is the time of the re-emergence of the worker, and even a deep-pocket Cerberus is not stupid enough to rock the boat with the Democrats about to win the White House. Think Taft-Hartley. Google it.
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Jimbo 3:03PM (9/29/2007)
Ah, Taft-Hartley. The act that restricted the unions and allowed for "Right-to-Work" laws. I don't see that being revoked or changed anytime soon. It's been in place for 60+ years and the Democrats have had control before but never changed it. Why would they bother now? Especially when many states (mostly in the south) are benefitting from investments by foreign automakers that would never have happened without Taft-Hartley. Heck, if Michigan was a "Right-to-Work" state, Toyota and Honda would probably invest there. There's certainly plenty of unemployed people looking for work. There's a reason BMW, M-B, Hyundai, Kia, Nanjing-MG, Toyota, Nissan, Honda, and VW are all investing in states with "Right-to-Work". Taft-Hartley made that happen and with it's recent success, why would it change?
Patriot 9:22PM (10/01/2007)
First of all, if more of the American worker were more patriotic. They would stand next to their American working brothers and sisters, and buy union made and American made products. Your rebuttable to this would be if they made quality automobiles you would buy them. Well first of all the production people only build them. They don't design them, they don't purchase parts for them. They do buy the products that their companies build, and also buy stock in their company. They are loyal to their companies and try to put out the best product as they possibly can with in their limits. Everybody wants something for free. The American consumer wants quality build automobiles at an affordable price. GM says that $1500.00 of the price of the vehicles they make goes to the retire worker. Well do you think that if they didn't have to spend that money on the retired worker that they would take it of the price of the vehicle ? NOT.. Apparently the Ford Motor Company has money to burn. Back in February of 2007 Ford in the start of another bad year and previous year , were able to give their hourly workers a bonus. If Ford was in desire need, how could they afford to give bonuses? They should have took that money and invested it in a new product. The American auto workers have families, homes, dreams just like every other working family. They deserve a piece of the pie just as much as you do. Working in a factory is not the same as working in a office. The mental and physical demands of the auto worker, demands a certain kind of personality. Of which not most people can't handle. It doesn't take a rocket scientist to do the job of some of the work. But it does take mental capacity and skill which is something people like you lack.
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