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Ford in the crosshairs. I'm shocked.
Posted on 10/15/2009 8:27:01 AM PDT by Sir Gawain
I knew they'd find a way to punish Ford: The new UAW contract with Ford apparently does not give America's surviving non-bankrupt automaker parity with GM and Chrysler, reports Bloomberg: "The plan doesn’t include cuts to retiree benefits, such as vision coverage, that were granted to GM and Chrysler." Rather, the pain seems even more concentrated on future hires (if there are any) than with the GM/Chrysler deals. ... TTAC wonders whether the UAW had an extra incentive to resist giving concessions that might make Ford more successful now that the union owns a large chunk of its main domestic competitors. ... P.S.: The argument that "the day the union owns the firm is the day workers will need another union" has always seemed a bogus argument against worker ownership. But in this case, where the union actually owns only competing firms, maybe it's not so bogus. Ford, GM and Chrysler workers used to have more or less equal status within the UAW. Now the union has a reason to give GM and Chrysler an edge wherever possible. ... 5:39 P.M.
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(Excerpt) Read more at slate.com ...
Ford has a lot of extra vehicles in the pipe line at the moment. They should just lockout the UAW until they offer the same deal as they gave to GM and Chrysler.
FOrd should tell the union what the contract is, period. If the union rejects that (and they will) then close everyone of the plants and move them to “right to work” states.
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
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Ford in the crosshairs. I'm shocked.
BUY FORD!!!
Have you driven a Ford lately?
Yep. Need to play some hardball!
They could probably get a pretty good deal on former Saturn plants...
Can’t do that, all UAW contracts have a clause... “while in force, no lockouts, no strikes.”
Legally, just how does one negotiate a labor contract with a management owner of a competitor?
Has Ford made indications of “conflict of interest”? Certainly, the owners of GM and Chrysler would prefer that Ford not receive more market share / profits than they have.
I thought Daimler sold Chrysler?
I would work for Ford in a minute if they moved in my area and were non-union. People need to really look at buying a Ford when looking for a new car. Support the companies that didn’t fall for the government bail outs.
Ford has some damn good cars now, and is the only domestic car maker I’ll buy from - period.
A union shouldn’t be allowed to own companies, there’s a clear conflict of interest in their duty to the employees of the non-owned companies.
EMPLOYEES should be allowed to own stock in their own companies, but not the unions.
This is the “competition” the government is going to get you.
I suspect that there is also a clause that says that the UAW and their members cannot have an ownership interest in the employer's competition. (i.e., conflicts of interest and good faith and fair dealing).
Since the UAW now has a controlling ownership interest in Chrysler and GM, I would think that voids any contracts that they may have with Ford.
It’s perfect, the unions use government money to screw their members at the companies the unions now own, while running the surviving company out of business. And they eliminated factories and jobs.
In the end, less jobs, less pay, less American cars.
Very good point. Does this not bring in restraint of trade and monopoly laws? Ford should plan on having lenghty conversations with the UAW while it moves production offshore. The UAW needs to understand that it doesn’t earn Ford a profit as a corporation and can be replaced by those who do. At some point during these conversations I would imagine the current labor contract will expire freeing Ford to hope to change.
UAW ownership of GM and Chrysler is a conflict of interest in its negotions with Ford!!!
Unless one party violates said contract, the other party may not violate either.
Never have seen language about ownership of competition products.
Surely there is NO conflict of interest, viz a viz their ownership position in auto makers other than Ford...right?
Duh!
It’s time to take back the country.
I’m surprised by how many people, and non political people, say they will not buy a GM or Chrysler product now. Some plan on selling their GM car on principle.
Govt healthcare will be just as popular.
Ford should file Chap 11 and tell the unions what their new contract is and eliminate all legacy costs. Next problem...?
Normal UAW contracts run 3 to 5 years.
Prime example of the government in competition with private enterprise.
Sure you can keep your current health care.
I know that, as soon as is feasible, I’ll be swapping out my Suburban for a SuperDuty.
Sounds easy, probably not that simple.
National labor laws require both parties to “bargin in good faith”.
I forgot about “restraint of trade”. Ford should propose a counter-offer favorbale to them and then, when UAW rejects it, go the NLRB with a restraint of trade case.
The ghost fleet?
While at the dealership working out a deal for the new vehicles I’m going to buy, the sales manager mentioned that Ford has actually gained marketshare this year.
The ‘Corporatist’ trifecta, Big Corporations, Big Government and Big Labor
The ‘Progressive’ way to destroy a market based economy.
Thanks for the ping. This is going to be interesting. (E)quality is job 1. /sarcasm
Or out of the US entirely.
FReepers here were laughing at me and mocking me back when GM and Chrysler were getting bailed out. I said those bailouts were the death of Ford. “Oh no”, said the average FReeper, “I’ll only buy Ford, they’ll get so much business they will grow even stronger!”
Sorry, Ford is in its death spiral. You cannot compete against the Government, when the Government gets to decide what rules you play by (and can arbitrarily change those rules as the Government sees fit) and owns your competition, and does not have to produce a profit (in fact, people expect them to lose money).
In reality, Ford was killed when Congress decided to bail out GM. Ford - and most of the market - just hasn’t realized it yet. It’s in its death spasms, but it’s dead.
For those here saying Ford should move - good luck. Ford does not have tens of billions of dollars laying around to acquire and build new facilities, nor do they have the money to withstand a 2-3 year shut-down of production.
Ford will have to play with the UAW for it has no other option. It cannot survive an extended shut-down. The arbiter of “conflict of interest” is the very body that SET UP the conflict. And it is in the UAW management’s own interest to squeeze Ford until they die and are joined to the GM/Chrysler Government Motors plan.
Ford will negotiate and accept what the UAW wants because rejecting it means death. Their ONLY hope is to accept the UAW contract, try to live a bit longer, and hope there is a Congressional change in leadership to a more business-friendly team that will take a more impartial view of the UAW/Ford negotiations.
Dead man walking...
The UAW resort at Black Lake in upper Michigan had a union for the workers of the hotel/resort and it was ruled that the UAW couldn't represent them because of the conflict of interest. For a time it was listed as UAW local #1.
They had to switch unions.
Rented a Ford Focus recently and was pleasantly surprised at how nice it was. Always been a Honda/Toyota guy but could be convinced to support a non-union non-government owned American car.
I REALLY like the Fusion. Don't know about others.
Well I’d prefer that my countrymen still have those jobs, just not in union shops.
Maybe I am missing something here but I was listening to Ron Gettlefinger on the Paul W Smith program on WJR and he said that the new contract was in line with GM and Chrysler.
All that is required to get rid of the Union is for Ford to sell the company. The “new” owners can then drop the Union if they so desire. This is legal and was done to a company I used to work for.
That statement is true.
However, the assumption is made that the government itself is capable of self regulation to the point of preventing self destruction.
Only one extreme Marxist government has survived this type of assumption of control over their economy.
While things are very ominous for Ford, it is even more ominous for the government controlled economy that the government must parasite to survive.
The union will quickly find themselves entirely in the same place they sent Ford, and very quickly.
unions. 12-13% of the workforce and they set the agenda.
I am sure if he lied to Paul W. Smith, Paul would have said something.
Conflict of Interest issue. Period.
Ford needs to lay them all off and move to Canada.
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