The tentative deal between Ford and UAW leadership has predictably run into trouble as it moves towards a vote by local leadership. Even though the deal would still fall short of the agreement reached with GM and Chrysler and Ford has sweetened the deal with $1,000 bonuses and 2,000 extra jobs, the union’s workers are spinning the deal into a union-breaking giveaway. “We just won’t have a union anymore if we do this,” a Dearborn Truck plant bargaining committee member tells the Freep. But the rank-and-file resistance is creating divisions between Ford, union leadership and workers. Even UAW President Ron Gettelfinger admits that “isn’t a concessionary agreement,” putting workers at odds with everyone else involved in negotiations. And their motivations for turning down the deal have to be bigger than mere frustration over $500m in labor savings already granted to Ford.
The UAW’s VEBA fund owns a majority stake in Chrysler and a large part of GM’s equity, meaning it’s motivations for refusing Ford equal concessions have to be seen in a troubling light. And since Ford didn’t take the opportunity to walk away from its debts on the taxpayer dime, it’s already at a disadvantage vis-a-vis its Detroit competition. If the UAW holds firm against Ford’s generous deal, what choice do observers have but to conclude that the UAW is willing to throw Ford to the wolves in hopes of improving the value of its existing equity stakes. Ford certainly shouldn’t make a more generous offer. After all, the deal that destroyed the UAW’s raison d’etre was the bailout which gave it a stake in two of its three employers in exchange for no-strike contracts. Contrary to the insistence of Ford’s UAW workers, signing this deal with Ford is the UAW’s last chance to prove it is a union and not a hostile management team.
Summary: Not content with having destroyed GM and Chrysler, the UAW has realized their work is unfinished and decided to wreck Ford as well.
How is it possible that Ford is forced to continue using UAW labor when the UAW owns its domestic rivals, GM and Chrysler? The UAW has a financial interest in destroying Ford for its own financial benefit now.
Ford should be allowed to walk away from the UAW and hire non-union labor. God only knows there’s enough unemployed former auto workers soaking up unemployment checks that could fill the ranks.
Except aren’t they having more problem with the Locals at Ford plants than with national leadership? I don’t think that fits the narrative.
I think it’s just that the union members don’t want to give any concessions to Ford until Ford declares bankruptcy as well, for fear of leaving something on the table.
+1 johnthacker
If union leadership was balking, then your analysis would ring true. Something else is obviously at play here.
accounting for inflation, Henry Ford’s offer of $5 per day well exceeds today’s compensation. Gettlefinger has sold the members down the river.
the UAW doesn’t represent anything but their own self interest. see Solidarity House as a means to an end, a self serving group of company stooges only concerned with self preservation who sold out America’s middle class, and that end is extremely detrimental to the hourly people they so dishonestly represent.
this from a relative of Genora Johnson/Dollinger, leader of the Flint Sit Down Strike Woman’s Brigade, back when “friend of the workingman” actually meant something. there should be a “storming of the Bastille” and a takeover of UAW headquarters from the dishonest and lousy, worthless bastards.
Eighty years of UAW “evil management is screwing the workers” makes it difficult to persuade members that Ford is in no position to give labor another piece of pie. Ford is broke. B-R-O-K-E. It is unprofitable. It is like a locomotive that is burning crossties (capital) instead of coal (profits). UAW members don’t care even if they understand. Mullaly gets paid a lot, doesn’t he?
jmatt, Ford is forced to use UAW labor because when the National Labor Relations Act [Wagner Act] was enacted in 1935, unions got the upper hand. Among important principles of that law, per Wikipedia:
* There can be only one exclusive bargaining representative for a unit of employees.
* Promotion of the practice and procedure of collective bargaining.
* Employers have a duty to bargain with the representative of its employees.
So Ford must get the union’s blessing. Unemployment compensation benefits for extended periods of time also strengthen the union’s hand.
Interesting how “pattern bargaining” has devolved into every man for himself. Actually, in the good old days, the first company to negotiate got the best (ie. cheaper) deal, since subsequent companies had to add “sweeteners” to the basic agreement. Wonder if that also works in reverse? FoMoCo gets lower rates as the sweetener?
That is a very good point I hadn’t though of through all this. It has irked me immensely that the UAW was literally handed ownership in the other two auto companies.
The UAW now negotiating with Ford does represent an enormous conflict of interest as they are now in effect the competition.
buickman: “accounting for inflation, Henry Ford’s offer of $5 per day well exceeds today’s compensation.”
But as always, there was a catch. From michigan.gov:
“To combat the high turnover and to boost morale, Henry Ford announced the famous “$5 a day” wage. It was actually a profit-sharing plan. (The bonus wage came with certain obligations to which the employee agree.) Nevertheless, Ford’s plan doubled typical wages and sent shockwaves through the other car companies. …
The $5 a day rate was about half pay and half bonus. The bonus came with character requirements and was enforced by the Socialization Organization. This was a committee that would visit the employees’ homes to ensure that they were doing things the American way. They were supposed to avoid social ills such as gambling and drinking. They were to learn English, and many (primarily the recent immigrants) had to attend classes to become “Americanized.” Women were not eligible for the bonus unless they were single and supporting the family. Also, men were not eligible if their wives worked outside the home.”
If you want to compete globally then your workers have to live like peasants. What’s so hard to understand?
The union does not own ChryCo and GM, a VEBA does, the VEBA answers to the retiree’s not to the current workers (there is a difference). The UAW used the original Ford deal as an outline for the BK negotiations with the others, they were able to say, if this is what ford needs to be profitable, then you don’t need much more. if that deal had not been done, GM would have been able to walk in and say we need this and that and the judge would just have had to agree. I think the union leadership made a promise to ford, gives us this deal b4 the bk’s and we will give you back some more afterwards. If it doesn’t pass, I bet your going to see several more plants close after the next contract. Ford is smart they are investing just as much in plants in eastern europe, malaysia, india, mexico, etc. as they are in the US.
Ford can fold and the UAW can declare victory. What a great plan.
gslippy :
October 19th, 2009 at 1:41 pm
Ford can fold and the UAW can declare victory. What a great plan.
I’m sure Buickman would like that. Power to the people.
If you want to compete globally then your workers have to live like peasants. What’s so hard to understand?
Yes, union solidarity and all that. That’s why the deal freezes and caps the wages of the peasant new hires and recent hires and allows Ford to hire more of them, in exchange for protecting the salaries of the pension-drawing retirees and long-time union workers.
I thought the current thing was if you want to compete globally, then you have to take millions from people with worse jobs than UAW union rates and give them to your car companies?
The UAW should not have given ANY concessions to Ford.
*IF* Ford is doing as good as they claim they are, they should thank their employees by providing a decent wage.
Me thinks that the UAW is heading into perilous waters.