UAW Denies Ford The Same Concessions They Granted to GM and Chrysler

In a move that should be considered shocking (but sadly seems like business-as-usual), UAW members at multiple Ford plants have voted against concessions that they granted to GM and Chrysler earlier this year.

According to news reports, many UAW members believe that “Ford is stronger financially than General Motors Co. and Chrysler Group and thus not entitled to concessions to close Ford’s labor cost gap with its domestic rivals.” Yet unlike GM and Chrysler, Ford didn’t wipe away billions of dollars in debts earlier this year.

By voting down concessions that would have made Ford more competitive with GM and Chrysler, the UAW shows they can't overcome their suicidal tendencies.

By voting down concessions that would have made Ford more competitive with GM and Chrysler, the union shows it can't overcome its suicidal tendencies.

During the last week, many Ford UAW workers voted against a concession package proposed by Ford and UAW leadership. As of today, it looks as if Ford UAW workers will officially vote down concessions that would bring Ford’s labor costs in line with competitors GM and Chrysler.

Here’s why this move by certain UAW members smacks of stupidity:

  • UAW President Ron Gettelfinger and UAW VP Bob King helped design the concession package. If UAW workers don’t like the package their leaders have helped to create, there’s a fundamental problem at the UAW.
  • Unions workers are supposed to unite. Ford UAW workers shouldn’t expect to be treated any differently than UAW workers at GM or Chrysler…yet that’s exactly what’s happening. In years past, when the UAW workers negotiated raises with General Motors, workers at Ford and Chrysler expected their companies to follow suit. This is called “pattern negotiation,” and it’s been a staple of UAW wage increase negotiations for decades.
  • …yet the Canadian Auto Workers union voted to accept the concessions. Evidently, the UAW’s brothers to the North recognized the importance of this agreement. That’s one more strike against the UAW.
  • America is in a recession. Unemployment is above 10% in many places in the country. What honest American isn’t grateful to have a job? Clearly, many of Ford’s UAW workers feel entitled to their employment AND a more generous wage and benefits package than their counterparts at GM and Chrysler.
  • Most importantly, Ford is at a cost disadvantage compared to GM and Chrysler. Uncorrected, this cost disadvantage could result in a bankruptcy at Ford. Granted, that scenario is highly unlikely…but that’s what UAW workers at GM used to say too.

In defense of the UAW workers at Ford, not ALL of the workers voted against the concessions. It’s possible that some workers simply don’t understand the concessions and are voting against them based on a lack of understanding.

It’s true that some aspects of this concession package are hard to swallow – but tough times call for drastic measures. The auto industry is off by nearly 30% – things are, in a word, bad. The concessions Ford is asking the UAW to accept include a wage freeze for new hires, some important changes to work rules,  and a “no strike” provision through 2016. Ford is offering some concessions as well, including moving some temporary workers to permanent status and commitments to increase production at various North American plants.

The no strike provision, incidentally, requires that UAW members who want to strike would instead be forced to work out their differences through arbitration.

Regardless of the sacrifices, the concessions aren’t the issue here. The issue is that Ford pays their workers more than GM or Chrysler… which means Ford’s costs are higher…which means Ford is at a disadvantage. If the UAW workers at Ford value their jobs – and their company – they should reverse their decision. Unfortunately, this seems all but impossible.

Since Obama's administration negotiated UAW concessions for GM and Chrysler, should they do the same for Ford?

Since Obama's administration negotiated UAW concessions for GM and Chrysler, should they do the same for Ford?

Faced with the facts, I wonder if our government should step in. President Obama found it necessary to bail out GM and Chrysler in order to save the economy, and in the process his administration helped these companies negotiate a new deal with the UAW. Shouldn’t the government do the same thing for Ford? I’m not a big fan of government involvement in business, but it seems unfair for the President to help only two of the three American automakers.

What do you think - Is the UAW out of line? Should Obama intervene and force Ford UAW workers to concede?

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