The UAW bites back: Ford shouldn't expect charity from its workers

There was a fair amount of shock at Ford Motor Co. last week when the United Auto Workers turned down a package of contract concessions. Ford executives shouldn't have been surprised, however. They brought this on themselves.

For nearly a year, Ford has maintained that it was different from General Motors and Chrysler.

For one thing, Ford, alone among the once-big three, has neither sought government loans, nor declared bankruptcy. There were a number of reasons for this. First, Ford had borrowed heavily in the private sector back when big corporations could still do so. Ford had also recruited Alan Mulally from Boeing, who took over as CEO and promptly began turning the stagnant automaker around. Finally, Ford has a better product line right now, and the company is not above bragging about that.

But the Ford brass should have realized they couldn't have it both ways. Their workers reasoned that if they were in much better shape than the bankrupt automakers, why should the guys on the line have to grant the same concessions?

Ironically, Ford may need give-backs more than GM or Chrysler. Those automakers shed most of their debt in bankruptcy court but Ford has $27 billion of debt, by most calculations. The union workers' decision to turn down contract concessions may cost the company money in the short run and the union jobs over time.

But Ford has only itself to blame. You can't brag about how well you are doing and then expect your workers to give you charity.

  

Posted Nov 09 2009, 05:00 AM by Susan Mannella

Comments

my opinion wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 9:21 AM

But Ford has only itself to blame. You can't brag about how well you are doing and then expect your workers to give you charity.

 Good point.  The unions should squeeze all they can out of Ford and hopefully can get Ford into the same position as the others. That's the ticket.

Titan Lee wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 9:31 AM

Welcome to "Obamaland".

Forget finding the terrorists hiding in caves.  Let's focus on finding those companies still making a profit.  Search and destroy.  Take no prisoners. "Give me 100% unemployment or give me death".

GBRetired wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 10:49 AM

The UAW will eventually force Ford to accept that Obama money. Why should Ford escape (no pun intended) the charitable works of this administration. Once accomplished, then the UAW, Obama, Pelosi, Reid etc. can claim the complete destruction of the American auto industry.

Hmmm... reminds me of American Bridge, Mesta Machine, J&L, Wheeling-Pitt and several other union triumphs!

chilco99 wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 11:45 AM

The sickle and the hammer  lives on at the P-G.

kevin morris wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 1:01 PM

You conservatives always find a way to surprise me. When discussing med reform you reasonably argue that you shouldn't have to pay for the mistakes or misfortune of others. Yet in this context, you think the workers at Ford should be touchy feely and share in the pain caused by the mistakes and misfortunes of the GM and Chrysler companies. I suppose they should sing Kumbaya while doing it.

The GM and Chrysler workers took concessions because their companies were going down the tubes. Ford isn't.  

GBRetired wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 1:18 PM

Kevin, if I understand your comment--you are stating that since Ford was able to borrow $27 Billion dollars to keep out of a government takeover--they should be forced to pay a higher salary rate than GM or Chrysler who sucked down the taxpayer handout. Somehow, there seems to be a little twisted logic in penalizing prudent management and rewarding the sloths.

kevin morris wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Mon, Nov 9 2009 5:27 PM

GB, I said nothing about what Ford management should do, and I absolutely didn't say anyone should "force" them to do anything. What I said was that GM and Chrysler employees chose to make major contract concessions because the companies they work for were going under. Ford is not, so their union should feel no compunction to make the same concessions, and conservatives who think they should are being hypocritical.

Ford is perfectly free to negotiate their  contract however they choose, and it makes perfect sense for them to try to use the other companies' workers' choices as a lever. Good luck with that.

Keeping it real wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Tue, Nov 10 2009 11:40 AM

Your right on point with your comments.

my opinion wrote re: The UAW bites back: Ford shouldn't expect charity from its workers
on Wed, Nov 11 2009 10:09 AM

I agree with Kevin, Ford is free to negotiate a contract with the UAW.  Ford should take the position that the standard wage and benefits package for the industry is that which is inplace at GM and Chrysler, which is also supported/backed by the US Government.  The car czar, DEM congress and President Obama have all signed off on that package.  Next question.