Ford Bid for UAW Concessions Dims as Rejections Mount at Plants

[nsap]

Originally Posted by doh

Do you not think that Any Goverment, today would not help with the costs of building a "All New" factory that would employ 500+ local workers?

Stimulus $$$$'s being spent wisely. Me thinks.

Ford could walk into a Brand New plant, for very little outlay.

I don't think the money to build new factories is the bigger issue here, but rather the fact that they would have needless excess manufacturing costs. Idle plants and plants not running at/close to capacity cost the company more than building a new one.

[ChallengeMe]

Originally Posted by syr74

If the UAW wont play, over the course of the next couple of year Ford should simply alter the layout of factories in such a manner that facilities in 'right to work' states could support Ford exclusively. If the UAW still wont budge, call their bluff by canning the whole lot but for those who actually want their job and bring in people actually who want a job to replace the rest....you'll see what loyalty looks like in a hurry as people get to choose between keeping their job and hitting the cheese line.

The issue is not right to work states. The UAW contract states that any new plant in the US or Canada will be union. Canning the whole lot cannot be done legally either. I agree with you completely, but Ford (and GM, Chrysler) burned all these bridges decades ago with the union when they were making fistloads of money and thought it would go on forever. Now they have to live with it. But I have zero sympathy for neither the management nor union in these matters. I just enjoy setting back and watch the foreign automakers opening new plants in the US.

[theoldwizard]

Originally Posted by All-Or-Nothing

Well I guess my next Mustang will be Mexican.

Highly unlikely.

Once the Fiesta is in production, all Ford assembly plants in Mexico will be at or near full production.

Despite significantly lower labor costs, Ford simply does not have the cash to build a brand new plant in Mexico any time soon.

[theoldwizard]

Originally Posted by goochman

I think we need to face the fact that a line worker job is not an upper middle class job anymore.

For the currently employed Ford assembly line worker, it is. They want to keep it that way, but I'm not certain how long they can. The current 2 tier wage system will not get many young workers to work in an auto plant even if volume picks up.

IMHO, Ford will outsource more component work. They have to, to stay competitive.

[theoldwizard]

Originally Posted by igor

Fusion and Fiesta are built in Mexico for a single reason and it ain't labor cost. It's free trade agreement Mexico has with South American countries.

Come on Igor, you are not telling the whole truth !

It is NAFTA that allow Ford to pocket the labor cost savings.

Also huge savings on benefits. If they set up Mexican plants like they did in Brazil, the workers get a free bus ride to and from the plant, free lunch and free family medical clinic (at the plant). This is all pretty fantastic for a country that is barely above third world standing.

[theoldwizard]

Originally Posted by nsap

If I were Mulally I would be throwing out the propaganda to the plants big time and not worry so much about public perception. It's more important at this point that their labor costs are competitive with GM and Chrysler.

I disagree. Mulally and Bill Ford will likely just let the dust settle and go on with business. I see no big changes at any assembly plants before the current contract expires. New components will be re-assessed for manufacturing inside or out, with heavier weighting on outsourcing.

Right now, keeping their image golden (by not butting heads with the union) is very important.

The next contract negotiations will be very interesting. UAW has long been proud of their "pattern" negotiations. Ford would be the likely target, but would GM and Chrysler be able to come up to Ford ? Would Chrysler even exist at that time ?

[theoldwizard]

Originally Posted by nsap

The reason most plant rejected it is because they have the skewed reality that Ford is in better fiscal shape than GM and Chrysler. Ford needs to get the word out to the plants they things aren't all rosy just because the media says they are.

That is not just at the plants ! The media and the Internet are all buzzing about Ford's upcoming 3rd quarter results. Even if it does show a profit for that quarter, the year will be a loss.

Lot's of expense in 2010. Fiesta launch, 3 new engines and NextGen Explorer.

At a recent internal Ford meeting, Mullaly would only say they are on track for profit in 2011. Nothing specific about 2010. 2011 is still a long way off. Lots could go wrong.

[Member17739]

Originally Posted by Member17739

I find it interesting that voting is set right before the 3rd quarter earnings release. IMO, Ford is going to surprise everyone with the latest earnings and they knew this is their last chance to make any changes to the UAW contract.