Ford heads into contract talks with the United Auto Workers

Article by Christian A., on July 22, 2011

Ford Motor Co. is set to engage in contract negotiations with labor union UAW next week in the worst position among the three carmakers in the United States. Due to the fact that the company did not obtain a government bailout, the company lacks two advantages that its rivals have -- a ban on strikes and a binding arbitration.

Specifically, workers at Chrysler Group LLC and General Motors Co. have agreed to take unsettled disputes from the bargaining table to arbitration as part of the U.S.-backed bankruptcies in 2009. In addition, they also agreed not to strike over benefits and wages during contract negotiations.

As for Ford, its workers did not concur with the wishes of union leaders. They also rejected the arbitration and the strike ban, making Ford the only U.S. vehicle manufacturer to face a possible strike.

Labor analyst Kristin Dziczek from the Center for Automotive Research in Ann Arbor, Mich., shared that there is no doubt Ford would be better off if they had the binding arbitration.

The analyst also said that ratifying a deal at Ford is a bit more uncertain compared to the two other carmakers as they have proven that they will turn down an agreement.

The union normally picks one vehicle manufacturer to make a deal, which is then used as a template for the other two. This pattern bargaining has kept benefits and wages close to parity among the three vehicle manufacturers, which currently hire around 113,000 U.S. hourly workers.

As of the moment, there may be a disruption with the parity. With Ford earning $9.3 billion in the last two years, the company’s employees may hesitate to agree on a deal crafted at Chrysler or GM or by an arbitrator for those automakers.

Topics: ford, uaw

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries