UAW Rejects "No Strike" Ford Contract
Who in their right minds thought that the United Auto Workers (UAW) rank and file would ratify a contract that included a no-strike clause? That would be like cutting off your balls to spite your penis. And so they haven’t (ratified the contract that is). Sure, Chrysler has one of them no-strike deals, but they’re dead in the water. Ford’s on its way back to profit! Ford’s CEO said so himself. Many times. As Alan Mulally and UAW Prez Ron Gettelfinger have learned, if you talk out of both sides of your mouth, you’re heading for a big old bitch slapping. On Friday, Big Ron told the Detroit Free Press that the UAW won’t return to the bargaining table if the measure was defeated. So Ford’s unionized work force will carry on as before, until the existing accord (so to speak) expires in 2011. The rejection will not play well with Ford’s investors, who were looking for the Blue Oval Boys to reduce their labor costs to match those of the transplants and cross-town welfare queens.
Post-UAW defeat Ford will likely look to outsource more of its production abroad. Which will play well with investors but NOT with the UAW, whose interests the Obama administration seems to take VERY seriously. Still . . .
“J.P. Morgan believes Ford could turn a third-quarter profit,” Automotive News [sub] reports. “With a faster-than-expected return to profitability in North America also possible.”
Anything’s possible, I suppose. Let’s see those October sales stats, feel Ford’s burn and meet back here for a reality check, shall we?