Ford-UAW Deal Rejected By Two Locals
March 7th, 2009 1:58 AM Share
The Freep reports that Ford’s deal with the UAW, which could have signaled a way forward for all the Detroit automakers, has been rejected by two locals. Local 892 of Saline, Michigan, rejected modifications to the union contract with 76 percent opposing. Local 1219 of Lima, Ohio, also rejected the changes by a mere 14 votes. Two Michigan locals are known to have approved the changes, 900 of Wayne and 228 of Sterling Axle Plant.
Published March 6th, 2009 6:40 PM
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OK, let's see. Bondholders won't budge. Management can't or is incapable of change. Unions say NO. Dealers want a spot at the TARP trough. Only C11 can cut this gordian knot.
You can assume that my post wasn't well said, and was pulled because it wasn't factual, if you want! However, consider the fact that LABOR is ONLY 10% of the cost of producing these vehicles! We never said that you felt Wall Street deserves the BILLIONS that they have received, with little or no oversight! Have you looked at the Executives and CEO's pay at Toyota and Honda compared to the Big Three and Wall Street?? Did the price of your Cars and Trucks go down when the work was out-sourced? We can't sell our Cars/Trucks in other Countries the way that they do here! Now CHINA has to loan us money, as POOR as China was, because we out-sourced our MANUFACTURING! Wall Street and the Banks stole your 401-K money and the value from your HOMES! Keep buying foreign cars and worrying about the Jobs Bank/Overtime rules/Holiday Pay, while you lose everything the UNIONS fought for you to get without sacrifice! How many more of you have to lose your Homes, Jobs,Cars,Health Care, and Pensions before you wake up and see who stole your MONEY? We will spend 3 TRILLION to let the Wall Street off-the-hook! And you are worried about less than 30 Billion so far, going to GM and Chrysler, as many jobs as we provide WORLD-WIDE? I will fight for my Family and Community, and am willing to lose my BS material things before I allow myself to be raped without a fight! I grew up without a lot of extravagances; I can eat crackers and peanut butter like some Retirees have to do! Can you? I can move back to the Inner-City and be comfortable, can you? When you lose your Home, or can't retire, there is a place for all of us in the ghettos or shelters! We can ALL GO DOWN TOGETHER! We are half-way there already! Health-Care expenses are the NUMBER ONE cause of Bankruptcy!
The "Labor is only 10%..." statistic is widely used however is typically taken out of context. Labor is actually the highest single cost in typical manufacturing. It is only at the final assembly stage in which labor makes up approx 10% of the costs. There is labor costs in manufacturing/processing the raw materials, component manufacture, sub assembly, etc. It adds up. BTW the reason "We can’t sell our Cars/Trucks in other Countries ..." is that instead of exporting, domestic manufacturers opened up separate, wholly owned divisions. Like Ford of Europe, Opal, GM Brazil, SAIC. Why would they do this? Well for starters there is not much of a demand for purpose built North American style cars in most other countries - Do you really need a Hummer in Japan? Have you seen the streets over there? Most significantly in many foreign markets US union level wage costs cannot be passed on to the consumer. The same thing happened domestically when other competitors entered the North American market the big 3 no longer had exclusive pricing power. Lastly, we will not all go down together. I, like many others have an education and a skill set - and that's what pays the bills, not a collective agreement. Yes, my income may get indirectly reduced as the economy contracts, however so will my cost basis as I no longer have to compete with you for goods and services. You overlook the fact the the economy is not stopping, rather it is the rate of growth that is slowing. 90% of North America still has jobs. Unfortunately, (for you) the demand for semi skilled labor at upper middle class pay rates has in fact, stopped. This, combined with loss of organized labor leverage means that it might be time to sell that second jet ski.
US, It's no assumption that your post was poorly written, you would not have gotten past freshmen year at my university writing like that. I am not going to read it again, nor anything past the first couple lines of your new one to argue with you. Your continued over use of the exclamation mark is just too painful (among other things). I am all for being casual and dismissive and trying to understand a writer's intent. I make my own mistakes, but if there is any boundary, you crossed it. While I understand your frustration and disappointment, I also understand why you are in the position you are in. I have done plenty of business in Detroit. Let me tell you the most important thing you will hear in this life - It's your own fault. The good news is you can recover, and life will go on. Once you realize that you bought a pig in a poke, I hope you decide to take charge of your new life, and not again become dependent on people who do not deserve your trust.