UAW threatens to torpedo Ford
10-27-2009, 09:08 AM
#1
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UAW threatens to torpedo Ford
http://www.autoblog.com/2009/10/27/needs-i...ct-with-uaw/#at
Ford has been lucky in that it had a large cash reserve during the economic recession that took down GM and Chrysler, but now it has higher labor costs than the other two, and parts of the UAW are holding out against any concessions thinking that they can bring all UAW contracts back up to pre-recession levels.
So Ford is finally showing signs of strong product and having just enough cash to keep operations, and there's this storm looming now from the UAW. What would happen if they striked Ford now?
Ford has been lucky in that it had a large cash reserve during the economic recession that took down GM and Chrysler, but now it has higher labor costs than the other two, and parts of the UAW are holding out against any concessions thinking that they can bring all UAW contracts back up to pre-recession levels.
So Ford is finally showing signs of strong product and having just enough cash to keep operations, and there's this storm looming now from the UAW. What would happen if they striked Ford now?
10-27-2009, 09:22 AM
#3
Ugh, unions. Way to bite the hand that feeds you.
10-27-2009, 09:24 AM
#4
Registered User
I hate the UAW.
I wish there was a way that automakers could get rid of them entirely. Then, they could focus on making good products and hiring qualified people and paying them fair wages based on their skillset and market demands. Seriously... 20-50/hr plus benefits to tighten a few bolts every day? What a joke.
I wish there was a way that automakers could get rid of them entirely. Then, they could focus on making good products and hiring qualified people and paying them fair wages based on their skillset and market demands. Seriously... 20-50/hr plus benefits to tighten a few bolts every day? What a joke.
10-27-2009, 09:32 AM
#5
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Plus they get paid overtime that they don't actually work. It's a very old practice that either needs a total overhaul or disbanded entirely.
10-27-2009, 11:06 AM
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I dont even know where to start anymore with the UAW. Definitely a great case to show why companies outsource. Better to bribe a couple of foreign officials and give jobs to some of the pooriest people in the world
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10-27-2009, 11:06 AM
#8
I think it is a good strategy. If you bring down the company, you can always put your Detroit home up for sale for $6,000 and live high off the hog in your retirement, or get another job in the boomtown that is the motor city.
10-27-2009, 11:59 AM
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10-27-2009, 12:16 PM
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I've been criticized by a number of people on various forums for suggesting that it might not have been possible to GM to simply dump the unions while at the same time I've argued that the unions are a big drain on the companies.
This is a good example of the union hurting a company when it shouldn't. It's also a bit scary because the Obama administration has shown that if a car company goes under it will protect the unions so in a sense, the UAW has less to loose than Ford.
In defense of the rank and file, it makes sense from there individual points of view. They can either vote to keep wages were they are and hopefully Ford with fix things or perhaps the feds will fix things. Or they can vote to cut their own pay. Sure, on the outside it's best for Ford and the union in the long term to cut benefits. However, that's easy to say when we aren't cutting your benefits. Since the UAW is a democracy it's hard to get members to agree to take one for the team.
Still, in the end I hope Ford gets there way. I think the UAW has been one of the biggest drains on the domestic auto industry and the cost and intransigence of the union has likely slowed any recovery by at least a decade.
This is a good example of the union hurting a company when it shouldn't. It's also a bit scary because the Obama administration has shown that if a car company goes under it will protect the unions so in a sense, the UAW has less to loose than Ford.
In defense of the rank and file, it makes sense from there individual points of view. They can either vote to keep wages were they are and hopefully Ford with fix things or perhaps the feds will fix things. Or they can vote to cut their own pay. Sure, on the outside it's best for Ford and the union in the long term to cut benefits. However, that's easy to say when we aren't cutting your benefits. Since the UAW is a democracy it's hard to get members to agree to take one for the team.
Still, in the end I hope Ford gets there way. I think the UAW has been one of the biggest drains on the domestic auto industry and the cost and intransigence of the union has likely slowed any recovery by at least a decade.