Positive Post of the Day: UAW Gives Ford a Break
The Freep reports that Ford officials are meeting with the United Auto Workers Union today, to renegotiate elements of their labor contract. Reducing pay for entry-level workers and reducing skilled-trades job classifications are said to be at the top of Ford’s to-do list. And why not? GM got the UAW to agree to streamlined skilled-trade positions, an entry-level wage freeze, a performance bonus freeze and a no-strike agreement. Why wouldn’t the UAW do the same for Ford, just because the Blue Oval didn’t give up major ownership stakes to the union and its allies in government?
No, even though Ford may be making money at the moment, the UAW understands that it’s simply not fair to put Ford at a competitive disadvantage. Especially considering that Ford hasn’t even had the opportunity to hire entry-level workers yet and has made the largest cash contribution to the UAW VEBA account of the Detroit automakers. Sure, Dearborn local committee persons are calling Ford’s requests for concessions “insane,” and are organizing workers against them according to Automotive News [sub]. But don’t let that fool you. The UAW doesn’t overreach and further make petty short term interests at the expense of a major employer’s well-being. Or, at the very least, the UAW understands that if Ford bleeds more money and goes under, the UAW is likely to end up with a good-sized equity stake in the bailed-out wreckage. Win-win! Or something . . .
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Why all the excitement about a two tier wage system for the Big 2.8? Assuming business picks up, and Ford, GM and ChyCo forget about the ability of their Mexican and Asian factories to make stuff - cheap - it will be years (decades, perhaps) before they recall all the existing laid off workers - at the old salary level - and then, only then hire some new people. I don`t see where the cost savings is going to be.
I've been getting a rare (very rare these days) laugh as the skilled tradesmen have been using the bumper sticker machine to re-label all their maintenance carts. (Knowing that the reduction of classifications is coming.) My favorites are Hydrowright (Hydraulic Repairman - Millwright), Pipetrician (Pipefitter - Electrician) or Hydromillrepair (Hydraulic Repairman - Millwright - Machine Repair.) Of course this is offset by other bullshit. The union is expanding with Ford's new found prestige/success - additional full time Quality and Safety reps for example. It's getting to be that the union is more chiefs than indians around here.
"it will be years (decades, perhaps) before they recall all the existing laid off workers - at the old salary level - and then, only then hire some new people." All those people were bought out, any new hires will actually be new hires.