Though the United Autoworkers Union's threat to strike Chrysler LLC tomorrow got the headlines today, the union's biggest challenge ahead lies with Ford Motor Co. (NYSE:F).
As Daniel Howes of the Detroit News points out, Ford is hoping to get a better deal than the agreement the UAW recently reached with General Motors Co. (NYSE: GM) because of the automaker's "more dire financial circumstances." UAW head Ron Gettelfinger has spent most of his career representing Ford workers and is close with Ford Executive Chairman Bill Ford Jr., with whom he's been speaking with almost daily for the past month, according to Howes.
Ford Chief Executive Alan Mulally is well-regarded on Wall Street but he certainly has his work cut out for him. Earlier this year, the Dearborn, Mich. automaker unveiled a major restructuring which included the elimination of 25,000 to 30,000 jobs. Pundits including Howes say more job cuts and plant closings are possible. Last year, Ford posted a record deficit of $12.6 billion.
Whether the close ties between Gettelfinger and Bill Ford will help avoid labor trouble remains to be seen. For now, the UAW is focusing its attention on Chrysler.
A Chrysler spokeswoman told the AP that the automaker remained optimistic about a settlement. The timing of the UAW's ultimatum was interesting considering that five U.S. Chrysler plants were going to be shut down anyway for about two weeks starting today because of lower demand for Chrysler products.
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Reader Comments (Page 1 of 1)
10-17-2007 @ 5:59AM
David said...
well I think ford chrysler and GM are greedy but i also think the UAW is also greedy they make too much money they should be paying moor for their health care and ther health care should be going up every year also fot the retires too from what i have heard i am paying lot moore per year for my health care for me along for me i am paying 3600 dollars a year for 500 dollar ded i am a retiree we have to pay way to much money for the car because of the uaw i do hope uaw loose they dont understand they are loseing out bad jobs are going over seas plants are shuting down the transmissions and the engines are being build overseas these are for cars that are built here. i will not buy a car with transmission made in france now this is on ford cars that i seen and i am a ford buyer or was if i have to buy a car made here but the transmission made over seas and engin made in germany i will buy a HONDA made in the united States where Americans are doing all the work or most. and they are geting good pay and you dont never hear about them going on strike. the uaw has a problem and i dont care about them
10-10-2007 @ 9:49PM
Angel said...
Well David I have to agree with you about certain companies being greedy. But you have no idea what you are talking about when it comes to my U.A.W. The U.A.W. has helped with the working mans health and safety, the equality of wages and health care needs. If the workers of the U.A.W. did not go to the establishment that you worked and purchased goods and services you probably would never have had a job at which ever fast food chain you apparently worked at. By the way when you want to talk about something know what you are talking about.Yes there is Honda plants in the U.S.A. and after they pay their workers guess were the rest of the money goes it is not the United States. But in return I'm sorry that you did not have an organization to back you up to help provide a cost effective health care or did you because you actually have health care.
10-11-2007 @ 8:35AM
ktp paint said...
ford lost its 12.6 billion because of the "way forward" that bill ford came up with. i dont fell sorry for them. the new ceo. gets how a year something like 30 million ayear, and never step foot in a ford plant ! now thats b.s.!! quit paying the big wig all this money and leave the workers that build the car, truck,suv alone for once.
10-15-2007 @ 10:52AM
David said...
Angel first thing thank you i did not work at a fast food chain and dont tell me about the UAW i was not in the union and i did not want to belong to the union i did not need the union i was taken care of good enough if i had a problem with the company i handle it my self i did not need a union to tell me what was right or wrong. the union was fine when it first started out but the union got to greedy now just like i said before yold keep going on strike moore of the union workers will find them self out of a job did you read what i said that lot of the transmissions and engins are build over seas that is putting americans out of work now i dont like that because when i buy a car i would like most of the car build here you tell me why i should pay big money for a car when the main parts are build over seas. don't tell me i do not know what i am talking about. when they start closes more plants laying off more workers maybe you will see what i am talking about. now i do not believe in out sourceing at all of any kind of business i say let the work stay in usa you need to be saying something to your senator not me washington is letting the big companies get buy with what they do.