Did the UAW Just Kill Ford too?


There is an old joke among Chevy owners:

FORD = Found On the Road Dead.

Well, this week, the once-mighty UAW may have just sealed Ford’s fate.

As most of America knows (or should know), through a tax-payer funded bailout and government-imposed bankruptcy, the Obama Administration gave General Motors and Chrysler shares to the United Auto Workers in exchange for debt owed to the UAW’s Voluntary Employee Benefits Association, or VEBA. In other words, the UAW is a major stakeholder in both GM and Chrysler.



Ford, on the other hand, did not become a recipient of taxpayer money and was not forced into bankruptcy by the Obama Administration. And, for this, it appears that Ford may ultimately pay a price (literally and figuratively).


You see, through its government-structured bankruptcy deals with GM and Chrysler, the UAW agreed to concessions, which included lower costs and a no strike guarantee through 2015.

Since a strike is a union’s only major weapon and since the Obama administration had convinced the UAW give up additional concessions and holster its strike weapon, both the lower costs and the labor peace has placed Ford in a huge competitive disadvantage. Not only is it left to contend with a higher-priced UAW contract, the UAW can strike Ford when its current contract expires in 2011.

Ford, as would any good business, recently sought to rectify GM and Chrysler’s cost and labor peace advantage by asking the UAW to modify its contract to level the playing field for Ford.

Two weeks ago, the UAW leadership agreed to modify its agreement with Ford.

“This agreement is another step in meeting the challenges of a very difficult time in the U.S. auto industry, and we look forward to presenting it to UAW Ford workers,” UAW President Ronald A. Gettelfinger said in a statement.

However, that’s when the trouble started.

Almost immediately, the UAW’s ’solidarity’ broke as rank and file union members began to campaign to reject the agreement, prompting UAW honcho Ron Gettlefinger to grouse that local leaders were campaigning on misinformation.

As the days progressed over these last two weeks and the local vote tallys came in, it became clearer that the UAW rank-and-file members were rejecting the notion of bringing parity to Ford.

As the Wall Street Journal reported this morning:

Ford Motor Co.’s rank-and-file union members rejected a concessions agreement, leaving the auto maker at risk to higher costs compared with competitors Chrysler Group LLC and General Motors Co.

Although some locals are still voting through Sunday, the United Auto Workers national leadership has accepted the defeat, said three union sources who asked not to be identified since they don’t officially speak for the UAW.

The leadership is now reviewing other options, these people said. UAW President Ron Gettelfinger told Dow Jones Newswires on Friday he will not continue bargaining or conduct a re-vote. Ford will now have to wait for any formal changes until 2011 when the current contract expires.

….

“I think the UAW failed its membership in adequately explaining how important it is for Ford to stay competitive with Chrysler and GM and how relatively minor these contract changes were,” said Brian Pannebecker, a Ford Sterling Heights, Mich. axle plant worker who voted for the concessions. The plant rejected the measure by almost 80%.


Now, with the government-backed GM and Chrysler having an economic advantage over Ford, the questions that emerge are: 1) Can Ford survive with its higher cost structure until 2011? 2) Will Ford, like GM and Chrysler, need a tax-payer financed auto bailout? and 3) Did the UAW just doom Ford to failure?

To learn more about the United Auto Workers, go here

Cross-posted on LaborUnionReport.
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25 Comments Leave a comment

Great Post LUR!!

Blue_Collar_Muse Saturday, October 31st at 5:24PM EDT (link)

I drive a Ford F-250 at the moment and love it. I’m so proud of Ford for not agreeing to steal from me to survive while still putting out quality vehicles that I vowed never to own another GM or Chrysler car, ever again, new or used.

Now you bring word that the UAW is trying to flex their considerable muscle in this matter. While that bodes ill for Ford, it does not automatically follow that it bodes well for GM and Chrysler.

Toyota makes a nice truck. Honda, Nissan and Mitsubishi make nice cars. They all employ Americans at several places from manufacturing, shipping, assembly and sales. This isn’t the 70’s where the bumper stickers about “Buying American” actually had some application.

Besides, if the UAW wants me to be concerned about them, they need to start by being concerned about me. They have failed abysmally in that regard. I wonder what their UAW members will eat when everyone is driving cars made by car companies that support America instead of demanding that Americans support the car companies?

Blue Collar Muse

Smaller Government! Lower Taxes! Stronger Defense! More Liberty! Complete Transparency!

An F-150...

LaborUnionReport Saturday, October 31st at 5:30PM EDT (link)

with 130,000 miles and still going strong.

While an engine swapout (SVT) is definitely on the horizon in another hundred thousand miles or so, if Ford is driven to take bailout money, it may be that a Nissan Titan is next.

 

Toyota Tundra

acat Saturday, October 31st at 6:26PM EDT (link)

Very solid truck. Well-designed, plenty of power, and good (not subcompact-good but good) mileage, and Made in the U.S.A.

Mew

1987 5.0, 2001 Bullit, 1995 F150

nessa Sunday, November 1st at 1:25AM EDT (link)

I wish I could justify buying another, if Ford tells the UAW to ****-off I just might have to. The 2010 Cobra Jet is pretty sweet and makes a nice statement about my feelings on algore and the global warming BS. I’d be willing to spend that just to see the UAW’s eyes when Ford closed up shop in detroit and opened their doors to employees who are willing to give a fair days work for a fair days pay. One can always dream…

“If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your counsel nor your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen.”—Samuel Adams

Contributor to The Minority Report

 
 

While I Admire Ford Taking The Initiative To Remain Independent...

rcov092 Monday, November 2nd at 1:03AM EST (link)

I am committed to seeing all Government Owned And UAW Owned automobile companies dead. The UAW is an enemy of the United States working to see its destruction for their own greed. The sooner that union is dead, the sooner the US can start to peel back the socialisim now infecting us.

I for one will not buy any GM, Ford or Chrysler product ever again. I will buy foreign, period.

“Not One Red Dime for the NRSC or NRCC till they stop trying to elect liberals”

 
 

I think Ford is in position to rally public support

Vegas_Rick Saturday, October 31st at 5:59PM EDT (link)

to their plight. Americans have a natural understanding of fairness in the marketplace. Ford is not in a favorable position with the government, the UAW or their American competitors.

But the are in a favorable position with the American people. The folks give them credit for getting their balance sheets in order before the crisis hit. They get credits for not borrowing money from the taxpayers and for not getting in bed with the UAW.

I may not be able to buy a new car or truck for a while, but when I do it will be a Ford. And I would do what ever I could to help Ford in this fight.

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘press on’ has solved and always will solve the problems of the human race.” Calvin Coolidge.

 

Ford's problem with winning a strike is that it takes money, time, and the legal system.

Achance Saturday, October 31st at 8:00PM EDT (link)

Comrade Obama and his junta control the money in this Country and largely control the legal system. If Ford decides to duke it out with the UAW, and they have before but that was when people named Ford were in charge, they have to be prepared to weather a long strike in which they either break UAW’s strike by having workers in sufficient numbers abandon the strike and cross the picket line to go back to work, hire replacement workers, or begin a process of transferring work to their plants in right to work states where the UAW has less influence over the workers.

To do any of those things, they’re going to need a LOT of money and with the communists in charge of the banking system, they’re going to have one Helluva time getting any financing for anything, so it will all have to be paid for with cash reserves and divestitures. They’ll face a hostile NLRB that will rule against management in any unfair labor practice that is charged. They’ll likely face a hostile judiciary at the trial court level and probably at the Circuit court as well. If they’re right, the Company will prevail with the USSC as it is currently constituted but it can take two years or more to get to the USSC and vindicate your actions. Meanwhile you’re shut down and being harrassed by every federal agency that has any jurisdiction over you.

Caterpillar won their strike with UAW some years ago even in the face of a Democrat NLRB but it was a very different World in which they did it. Even though they broke the strike, they were not able to decertify UAW. Rest assured the Government would move Heaven and Earth to prevent an employer like Ford from decertifying UAW; that would clearly reveal the idol’s clay feet. God, I get excited just thinking about it. My first piece of advice to Ford management is that they need a plan and the money to get to January 2013, and if they look around and see that Comrade Obama is still President, they need an exit strategy for selling or shutting down the company or, at least, some way to deal with the Government confiscating the Company. If Ford is looking for a good LR Hack, I’m looking for a career capstone!

In Vino Veritas

I heard this on Radio today

antisocial Saturday, October 31st at 11:36PM EDT (link)

and was wondering if there is a WH angle to it. Maybe they want to own Ford too. I am not big into conspiracies… don’t know why this makes me suspicious.

No you can’t - Moe Lane
——————————
The Emperor has no clothes!!!
——————————
Republicans who lost the Crap-and-Raid fight in the House -
Mary Bomo Mac (CA-45)
Mike Castle (DE)
Mark Kirk (IL-10)
Frank A. LoBiondo (NJ-02)
Chris Smith (NJ-04)
Leonard Lance (NJ-07)
John M. McHugh (NY-23)
Dave Reichert (WA-08)

 
 

I'd consider buying a Ford...if

SteveLA Saturday, October 31st at 8:34PM EDT (link)

I’m going to be in the market for a new car in the next couple of years, my Honda is hitting 140K miles, and I do lots of miles every year. If Ford stands up to the UAW, they just moved up the list of companies who’s products I will be considering.

Besides the new Taurus SHO is the bomb.

______________________________________

Competency over ideological purity

My next new car will be a Ford.

Achance Saturday, October 31st at 8:54PM EDT (link)

I’ve driven Chryslers for the last twenty-plus years but between what the Germans did to the company and the bailout, no more. Likewise, GM’s feckless management just disgusts me. They should have gone bankrupt two or three years ago and had it out with UAW under a Republican appointed NLRB, instead they decided to hold out and play footsie with a Democrat and the union.

Then again, my next car may be a 1949 or so Dodge PowerWagon; unbreakable and no electronics, run fine on poor quality gas, just the thing for living in a newly forming Third World nation.

In Vino Veritas

Ha! Yeah, I wish I still

Warrior Monday, November 2nd at 11:35AM EST (link)

had my old Dodge Dart. I could fix or replace EVERYTHING on it no problem.

“Attorney General Holder’s decision to re-open the criminal investigation creates an atmosphere of continuous jeopardy for those whose cases the Department of Justice had previously declined to prosecute.”
—–signed by former [CIA] directors Michael Hayden, Porter Goss, George Tenet, John Deutch, R. James Woolsey, William Webster and James R. Schlesinger.

Read http://www.redstate.com/warrior/ for insightful commentary on today’s events…

 
 
 

When a company's employees own their competitors

itrytobenice Saturday, October 31st at 10:23PM EDT (link)

It’s a real problem

Right now the UAW will profit enormously if they can drive Ford out, improving the marketability of GMC and Chrysler.

This is a place for the courts to step in and make lemonade (by squeezing the noggins of some real sour pusses.)

The problem with America is stupidity. I’m not saying there should be capital punishment for stupidity, but why don’t we just take the safety labels off of everything and let the problem solve itself?

Good point. That actually opens an interesting legal question. (nt)

The_Gadfly Tuesday, November 3rd at 10:41AM EST (link)

We’ve been called racists enough now that it shouldn’t bother us any more.

-AChance, http://www.redstate.com/moe_lane/2009/11/03/what-men-may-do-we-have-done/#comment-24463

If NY23 was a beat down for Conservatives, what do you call what happened to Progressives in NJ and VA?

inspired by ColdWarrior, http://www.redstate.com/hooah_mac/2009/11/04/ny-23-the-agony-of-defeat-not-so-much/#comment-156

Nothing the UAW does will be illegal to Comrade Obama's DOJ.

Achance Tuesday, November 3rd at 11:00AM EST (link)

And, Ford management won’t dare challenge it for fear of what both UAW and the US will do to them. Now, my idea of good fun would be for a Republican state to buy some Ford stock for its cash reserve funds or for it’s benefit funds and then do a shareholder suit of some sort, perhaps anti-trust. I don’t know business law very well. There are probably some labor law violations in there too but most of those have to go through the NLRB first where I’m sure the UAW can do no wrong.

In Vino Veritas

 
 
 

Ford should sell all it's assets to Japan

izoneguy Saturday, October 31st at 11:48PM EDT (link)

And just get the hell out of dodge…….

“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson

No we need to implement Plan B before that happens

Richard Mullins Saturday, October 31st at 11:54PM EDT (link)

or course it might kill Ford,GM and Chrysler in the process, but that’s ok.

For more on my views, go my wordpress site:
http://rpmullins.wordpress.com

For more on Happy jet airlines, go here:
http://happyjetairlines.wordpress.com

For a good dose of satire go here:
http://thesquash.wordpress.com

For more of I like to do a lot:
http://www.flickr.com/photos/42008626@N03

 
 

I am sure Ford will be welcome in TN, SC, NC, VA or any other right-to-work state

Jack_Savage Sunday, November 1st at 12:38AM EDT (link)

I would break ground on the new plants now, tell management to put their homes on the market and tell the UAW to go straight to hell. It’s way past time for the gloves to come off when dealing with these ignorant, worthless, brain-dead bastards.

That's exactly what I was thinking

bk Monday, November 2nd at 3:43AM EST (link)

Ford needs to get the hell out of Michigan.

 

Ford should come to Florida

GregInFla Tuesday, November 3rd at 11:06PM EST (link)

And use all the Shuttle workers that are about to lose their jobs.
And do the anti-trust laws apply to the government?


– A true evolutionist would let endangered species die off. Anyone care to change sides?

Support Marco Rubio for US Senate.

 
 

Ford needs to fight the union

cooperscopy Monday, November 2nd at 3:51AM EST (link)

It’s time that Ford stood up to the UAW. I for one won’t ever buy another GM or Chrysler vehicle, as long as they’re taking government money and under the control of Barry Motors. On the other hand, I’ll support Ford as long as they continue to put out a solid product. Nothing beats a Ford Truck. The public should get behind Ford, and not allow the Unions to bankrupt them also, so the government can come in and then the Unions under the messiah will get whatever they want. This cycle has got to stop or all will be under Barry and his union thugs control….

Ron Victor

 

Not so fast on kudos to Ford...

Read Chesterton in New Improved Jersey Monday, November 2nd at 11:15AM EST (link)

The reason they did not get sucked into the black hole of government bailout money is that the corporation had a seat at all of the politically correct tables, including the Tides Foundation. Ford was warned of the coming 2008 collapse and arranged their finances accordingly via strategic liquidation of assets.

Ford traveled with snakes, and crawled on their belly. Now they will act surprised that they’ve been bitten.

“Nature is not our mother: Nature is our sister. We can be proud of her beauty, since we have the same father; but she has no authority over us; we have to admire, but not to imitate.” - G. K. Chesterton, “Orthodoxy,” Chapter VIII.

Love that sig line nt

Warrior Monday, November 2nd at 11:37AM EST (link)

“Attorney General Holder’s decision to re-open the criminal investigation creates an atmosphere of continuous jeopardy for those whose cases the Department of Justice had previously declined to prosecute.”
—–signed by former [CIA] directors Michael Hayden, Porter Goss, George Tenet, John Deutch, R. James Woolsey, William Webster and James R. Schlesinger.

Read http://www.redstate.com/warrior/ for insightful commentary on today’s events…

 
 

Please tell me again why

Warrior Monday, November 2nd at 11:40AM EST (link)

gubmint control of one or two health insurance plans won’t drive out the privately held insurance companies??? (pun intended)

“Attorney General Holder’s decision to re-open the criminal investigation creates an atmosphere of continuous jeopardy for those whose cases the Department of Justice had previously declined to prosecute.”
—–signed by former [CIA] directors Michael Hayden, Porter Goss, George Tenet, John Deutch, R. James Woolsey, William Webster and James R. Schlesinger.

Read http://www.redstate.com/warrior/ for insightful commentary on today’s events…

 

UAW lesson learned…

General_Confusion Monday, November 2nd at 3:32PM EST (link)

What doesn’t kill you makes you stronger, er, I mean, what you kill makes you RICHER!

Why wouldn’t the UAW try to kill Ford? They killed GM and own a large 39% chunk of GM as a reward (89% if you include their partner the Government). Even “better” they now OWN Chrysler outright with 55%?

Seems to me to be a logical course of action, kill FORD then own it. Extortion pays very well when Uncle Sam finances it. Aren’t you glad that BILLIONS of your tax dollars were transferred to them?

http://www.cleveland.com/business/index … perce.html
http://online.wsj.com/article/SB124087751929461535.html

 

Well Ford could just let the company FAIL and those workers...

JadedByPolitics Monday, November 2nd at 8:31PM EST (link)

could have NO jobs! They could take Ford overseas and let those workers have NO jobs! There is alot that Ford could do but if I were Ford I would make those UNION workers have NO job to make my point!

Whoever has his enemy at his mercy &
does not destroy him is his own enemy

 

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