REPORT: Three Ford plants vote down new contract with UAW
Pattern bargaining is how things tend to be done in Detroit, a strategy which ensures that one automaker doesn't tend to get a plum deal at the expense of the other car builders in town. General Motors and Chrysler negotiated pretty hard with the United Auto Workers as part of the bailouts, and Ford's now in the process of securing new agreements with its labor force. While the Blue Oval didn't need government money to stay afloat (well, aside from those low interest technology loans, anyway), it wants parity with its rivals workforce deals.
Several Ford plants have approved the new deal, in which Dearborn has asked for the same concessions that its rivals have already secured. Most recently, however, three Ford facilities have voted down the plan to hold firm entry-level pay and benefits, limits on the union's right to strike over wages and benefits, and consolidates skilled trades. Those opposed to Ford's new agreement argue that the true spirit of pattern agreements would lift Chrysler and GM up to where Ford's current agreements are. Kansas City's F-150 plant slapped down the proposed contract by 92%, but Ford will await the final tally before conceding defeat – or celebrating successful negotiations. Contentious labor dealings are certainly not something Ford wants to deal with at this precarious moment. Even while business has been trending up lately, there's still a long way to go, and if labor puts a skip in the get along, it could be a nail in the coffin of a successful recovery.
[Source: Automotive News - sub req. | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 3)
Matt 11:45AM (10/27/2009)
GOOD! Ford is getting very greedy.
If Ford wants their employees to make the same sacrifices, then Ford should file for C11. *If* Ford was doing as well as they arrogantly believe they are, then they should pay their employees as such.
I think all the workers at Ford should adopt the motto of Saint Al when he was begging for money before congress:
"I'm fine where I'm at."
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geo.stewart 11:50AM (10/27/2009)
gee, I counter the union is greedy and wants Ford to be Obama run as well. Heaven forbid, a company succeeds on its own and provides job security through profitability.
Ford is asking for a level playing field. where is the greed in that?
Is the union only happy when the whole country is paying their salary?
TigerMil 12:06PM (10/27/2009)
Stupid local labor management is trying to make a point, i.e., parity with Ford's deal, which is an older deal than the one(s) with GM and Chrysler. Labor is trying another bite at the apple, essentially arguing that what Ford can live with so can GM and Chrysler, thereby totally ignoring the TARP or whatever government support GM and Chrysler got.
To this day I fault Ronald Reagan for not breaking the UAW rather than PATCO.
He probably couldn't break the UAW.
It's broken now...it's like a chicken with its head cut off running around spouting blood.
James Sonne 12:23PM (10/27/2009)
I'm not sure that $70k a year for sitting in a swivel stool and power-ratcheting the same one nut into the same one place for 7 hours every weekday is justifiable in all honesty.
The workers can strike for better wages all they want, but in the end there are plenty of people willing to work for $10-15 an hour doing that same work. It's just spite that drives that behaviour, and it amounts to a kind of corporate terrorism: "If you don't give us what we want we'll ___________!" The way I see it, if I were the CEO of Ford, I would enact a Zero Tolerance Union policy and run a nationwide commercial asking for applicants to every plant they have and totally replace the workforce.
When 30 million people are looking for jobs, it doesn't matter if you're getting $40k with benefits or $70k with benefits. You can live well on either of those, especially for a job that requires no degrees or certifications. If I worked at a Ford plant, or anywhere, I would be ECSTATIC to HAVE A JOB and realize how replaceable I am.
Jei 12:44PM (10/27/2009)
Though I am openly dismayed by some of the higher wage systems the auto unions have created in their industry ---- you can't get paid at those levels doing the same thing in other industries/markets; I am glad that many of them aren't letting Ford take advantage of them in this uncertain economy.
We know Ford can not afford a strike of any kind for any of its vehicle lines. We also know that Ford doesn't want to get into a financial situation where they must request Govt financial assistance --- that would be a PR disaster at which they'd be late to the game when they've been openly offered financial assistance early on.
The Ford union members are seeing 1st-hand how some concessions are leading to major cutbacks only at their expense. Ford has not entered into a bankruptcy situation and should be allowed to ask for additional "give/cut backs" from its employees.
miles 2:09PM (10/27/2009)
Aren't all the major automakers' operations unionized all over the world? I think they all make a rather better wage than is typical for that type of work in their respective countries. Or am I wrong? Can anyone provide some facts on this?
To think of life in a modern assembly plant as mindless wrench-turning only proves you don't know what you're talking about.
And before you label me - I'm no union fanboi, but dang guys, get a clue about real work in the real world.
Matt 1:27PM (10/27/2009)
Geo,
If Ford wants a level playing field.......then they should level it by going C11. The ball is in their court.........but Ford employees do not deserve to take the same hit that GM/Chrysler employees did.
FORD is the one that didn't declare C11.....not the UAW.
some1 1:54PM (10/27/2009)
Jei,
you are insane. NO other place in this country can you get paid so much for so little. Half those workers make high amounts of money for little to no education. And ford taking advantage of these people? They are taking advantage of fords bad situation. If anyone deserves to be fired, its those union workers who voted it down.
If ford goes into C11, i hope they all get fired... you would think they would be happy to have a high paying job to essentialy know jack crap, on top of it being in this climate.
Ford offered to bring more industry to the US in compromise, so basically, because these greedy employee's cant take a pay cut from their overpaid jobs, ford may not move industry here, killing the ability for others to gain a job.
So not only are these people hurting their own hand that feeds them, but everyone else who would like to be making atleast a bit of income.
your rediculous.
geo.stewart 5:46PM (10/27/2009)
matt, you are a moron. they didnt do the rivets any faster or pop a seat into place any quicker in order to garner better pay. I would say same pay but they should get a bonus for the higher quality scores but that is a bonus, not standard pay and union contracts. pay for performance, not sitting on your a$$.
%$#$%#@!!# sense of entitlement$#@$%@#@#
Ford's financial situation is due to Mulally and better product planning; as well as better overseas programs in Europe and S.A. Mulally is indeed earning his keep.
Julius 11:38PM (10/27/2009)
@ Miles:
"Aren't all the major automakers' operations unionized all over the world? I think they all make a rather better wage than is typical for that type of work in their respective countries. Or am I wrong? Can anyone provide some facts on this?..."
Perhaps, except in the US. Toyota had the only other unionized auto plant of the transplants - and they just closed it. The other US plants for Toyota/Honda/Subaru/Hyundai/BMW are not unionized.
Mike 3:13AM (10/28/2009)
Matt,
Dumb comments as always, yeah what Ford should do is file Chapter 11, then you would be happy, but they aren't going to do it any time soon.
If I were in charge, I would renegotiate to close any plant that votes down the proposal and keep open/reopen ones who want to work. They won't be able to strike if the next model year changeover means the equipment at their plant is moved to a new one where the line will resume the next model year without the dingleberries who didn't want a job.
In these times, people are lucky to be working at all, especially in the auto industry. I'd bet the laid off workers at the dozens of closed plants in the last 3 years would be happy to sign this agreement and go back to work.
I had given the UAW some credit lately as they seemed more willing to play ball and understand the position the company they work for is in, but this pulls some of that credit out. Even if Ford were to turn a slight profit for the quarter, they are in a hole right now and they need concessions to make it through. The only thing these idiots are unable to strike for is better wages, there's plenty of other things they can strike for and I'm willing to bet a few power-hungry leaders in the plant are telling half truths to the masses of workers who don't really understand what the agreement really entails. Ford has a lot of other options and they don't need a workforce who doesn't want to give as much as they have gotten over the years.
Matt 11:20AM (10/28/2009)
IF Ford wants the same concessions form their workers that GM/Chrysler workers had to take.....then, yes Ford should file for C11.
If Ford does not want to file for C11...then they should shut up and pay their workers. A non-bankrupt company should NOT get the same concessions as a bankrupt company. To believe that is foolish.
C11 affords you some special treatment...and if you choose NOT to file for C11....then you don't get that special treatment.
malad456 12:23AM (12/17/2009)
These people who are making comments do not know what it is like to work at some of these Ford plants. I work for Ford (Skilled Trades) and I work in a dirty, greasy, nasty part of the plant and I will tell you that If you were offered my job for $15.00 an hour you would get out there on the floor and start crying and probably run out the door. Ford cut all overtime in most plants and that means my pay got cut in half. That makes it even harder to go into work everyday. They just opened the contract in April of 2009 and we gave up more. When does it stop? How can people just go out and buy a new car when they just keep on taking from the little guy?
The people who don't work for Ford or a Union should keep their comments to their self because they are on the outside looking in and don't know or see the whole picture!
MeiSooHaityu 11:45AM (10/27/2009)
I do wonder sometimes why I stick up for the UAW. Ford shows a glimmer of success and then the Union decides to screw it up.
Guys, wait for next contract period. If Ford looks good then, then you can negotiate a better deal. In the mean time, let them have the cometitive edge they need to compete in tough times.
If the UAW turns this down for Ford, I definently wouldn't defend the UAW against any criticism again.
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Judy Zik 1:19PM (10/27/2009)
I have to agree. I don't go for the all out union bashing around here. This however is one of those cases where they lose me. It is for the most part just cutting the pay new hires get. Overall these are not big sacrifices to ensure you have a job. Ford needs wage parity with the others. They will likely never have a level playing field since they didn't wipe their debts clean and become Government owned but wages should be the same.
Mike 3:19AM (10/28/2009)
Well said, I'm in the same boat, I had been sticking up for the union as they have shown some signs of rational thinking lately, but this move is idiotic at best. It only shows how short sighted some of these employees are and how little they understand the predicament their company is in.
What you really have to love about the union is how their people are not held to the same sort of work rules as the rest of us. If I was unhappy with my job and started riling up my co-workers against my company, they'd pull me in and fire my ass immediately. Yet a few greedy, powerhungry a-holes do it while under union protection and they aren't touchable.
gino 11:46AM (10/27/2009)
The mouthbreathers never learn...
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MeiSooHaityu 11:48AM (10/27/2009)
Like you honestly believe that :D You hate Ford so bad, you would want that to hurt them as much as possible.
Seriously, let Ford actually make money and build up funds before turning down what they need to become stable.
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ronzo 11:50AM (10/27/2009)
This country would be better off without big labor and their parasites who live off the workers they supposedly 'protect'. Instead, big labor enslaves them... by keeping them dependent upon big labor's "protection" racket. The mob is as mob does.
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Eric77TA 12:00PM (10/27/2009)
I'm not totally anti-union. They've had their place, but this is one of the stupidest things I've ever seen. Sorry, those bankrupt companies being funded by the taxpayers are not going to get "lifted up" to your point.
The whole "I get mine or I'll kill the whole company" attitude shows these people could care less about Ford. They just want to get "theirs" that they "deserve." If there is no egg, just strangle the goose?
This is the new reality of being an auto worker. Accept it, or watch your entire industry collapse.
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