UAW Reaches Tentative Agreement with Ford

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Thread: UAW Reaches Tentative Agreement with Ford

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    UAW Reaches Tentative Agreement with Ford

    UAW Reaches Tentative Agreement with Ford

    Ian Thibodeau, The Detroit News Published 9:07 p.m. ET Oct. 30, 2019 | Updated 9:11 p.m. ET Oct. 30, 2019

    Ford Motor Co. and the United Auto Workers have reached a proposed tentative agreement less than a week after UAW members ratified an agreement with General Motors Co.

    The pace of negotiations at Ford starkly contrasts that set by General Motors Co. and the UAW. The union ratified a contract Friday with GM after a six-week strike. Ford and the UAW, which continued negotiating during the strike, began main-table talks Monday morning. They wrapped three days of negotiations after 8 p.m. Wednesday.

    "Our national negotiators elected by their local unions have voted unanimously to recommend to the UAW-Ford National Council the proposed tentative agreement," said UAW Vice President Rory Gamble in a statement Wednesday. "Our negotiating team worked diligently during the General Motors strike to maintain productive negotiations with Ford...Out of respect for our members, we will refrain from commenting or releasing full details of the agreement until the UAW-Ford Council leaders meet and review the details."

    The deal with Ford ensured more than $6 billion in product investment in Ford's U.S. facilities, according to the UAW.

    "Ford can confirm the UAW’s announcement that the UAW and Ford have reached a proposed tentative agreement on a four-year contract," said Bill Dirksen, vice president of labor affairs at Ford in a statement. "Further details will be provided at a later date."

    Ford-UAW presidents from around the country are expected in Dearborn on Friday to vote to present the tentative agreement to members for a ratification vote. Votes would likely be due the following Friday, Nov. 8.


    Experts had expected a tentative contract with Ford would come relatively quickly. GM and the UAW had to start from scratch to establish a new four-year contract. Bargaining at Ford — and at Fiat Chrysler Automobiles NV, which will be the final Detroit automaker to negotiate a 2019 contract with the union — have the benefit of following the pattern set by GM.

    Pattern bargaining essentially lays out the larger economic issues of the contract for all three automakers. The standards set in the GM contract on things like wage increases, health care coverage, the use of temporary workers, bonuses and profit sharing are expected to be mirrored at least partly in the Ford and Fiat Chrysler contracts. Pattern bargaining protects against any one Detroit automaker having a sweeter deal with its membership.

    But there are "levers" the UAW and the other automakers can pull to tailor contracts.And Ford would have more of an opportunity to tweak its contract than FCA. The final company typically has the least amount of wiggle room.

    Ford was expected to push back against the $11,000 ratification bonus to which GM and the UAW agreed. The contract ratified by GM-UAW members on Friday pays record ratification bonuses to members, ensures paths to permanent employment for temporary workers, and promises wage increases for members who'd been paid less than their more their legacy counterparts. That could be expensive for Ford if the pattern were to be followed exactly.

    Ford's relations with the UAW differ greatly from those between the union and its crosstown rival. The Dearborn automaker doesn't have as large of a manufacturing presence in Mexico as GM. And Ford isn't burdened with the same excess-capacity issues as GM.

    The last contract was negotiated in 2015 during periods of growth. Four years later, potential plant closures, expensive bets on future technology, and an uncertain regulatory and trade environment make for a tougher negotiating environment.

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    Re: UAW Reaches Tentative Agreement with Ford

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    Ford cannot afford a strike so they can't put up much of a fuss

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    Re: UAW Reaches Tentative Agreement with Ford

    Amazing what happens when there are grown-ups in the room.










    .

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    Quote Originally Posted by Perian View Post
    Amazing what happens when there are grown-ups in the room.










    .
    More likely when your competitor does all the hard work for you

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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by jzchev28 View Post
    More likely when your competitor does all the hard work for you
    I guess you missed the part where they had been in negotiations the entire time the UAW was on strike with GM.
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    Re: UAW Reaches Tentative Agreement with Ford

    The UAW always picks an extortion/strike target. This time it was GM. The GM deal is the basis of the Ford deal. It's not like Ford's brilliance saved them a strike.
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by jzchev28 View Post
    Ford cannot afford a strike so they can't put up much of a fuss
    That was a joke right?


    Quote Originally Posted by Extreme4x4 View Post
    I guess you missed the part where they had been in negotiations the entire time the UAW was on strike with GM.
    Apparently he missed a lot...................

    This little nugget was a big part of GM workers angst.

    "Ford's relations with the UAW differ greatly from those between the union and its crosstown rival. The Dearborn automaker doesn't have as large of a manufacturing presence in Mexico as GM. And Ford isn't burdened with the same excess-capacity issues as GM."

    And in the end, how much is GM saving by alienating the country that butters its bread?


    Quote Originally Posted by ksr View Post
    The UAW always picks an extortion/strike target. This time it was GM. The GM deal is the basis of the Ford deal. It's not like Ford's brilliance saved them a strike.
    Agree, but what if UAW targeted Ford, easily settled, then went on to GM? GM was in a precarious situation by their own doing............

    That may have put MORE pressure on GM, Ford already settled and GM still pinned to the mat.
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    The bottom line here is that GM by its own estimation lost roughly $3Billion by letting the UAW walk out of “negotiations” and shut down GM for a Month. Even if GM ultimately outsmarted the UAW, it paid one heck of a price

    And GM still has too much excess capacity

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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by Ed753 View Post
    That was a joke right?




    Apparently he missed a lot...................

    This little nugget was a big part of GM workers angst.

    "Ford's relations with the UAW differ greatly from those between the union and its crosstown rival. The Dearborn automaker doesn't have as large of a manufacturing presence in Mexico as GM. And Ford isn't burdened with the same excess-capacity issues as GM."

    And in the end, how much is GM saving by alienating the country that butters its bread?




    Agree, but what if UAW targeted Ford, easily settled, then went on to GM? GM was in a precarious situation by their own doing............

    That may have put MORE pressure on GM, Ford already settled and GM still pinned to the mat.

    The UAW always picks the healthiest of the Big 3 and then tries to bleed them dry. GM's "own doing" in this case was making a profit and actually trying to scale their business for future needs. Whatever GM gave up in the strike probably only hurts Ford and FCA, since the same basic contract then moves on to the other victims..... I mean companies.
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by jpd80 View Post
    The bottom line here is that GM by its own estimation lost roughly $3Billion by letting the UAW walk out of “negotiations” and shut down GM for a Month. Even if GM ultimately outsmarted the UAW, it paid one heck of a price

    And GM still has too much excess capacity
    Lost $3B is misleading. That’s potential sales, not profit. They also saved a bunch on material, labor, etc. Sometimes you need short term pain for long term gain.
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by ksr View Post
    The UAW always picks the healthiest of the Big 3 and then tries to bleed them dry. GM's "own doing" in this case was making a profit and actually trying to scale their business for future needs. Whatever GM gave up in the strike probably only hurts Ford and FCA, since the same basic contract then moves on to the other victims..... I mean companies.
    Exactly. They can demand more from the strongest company because they have the most and then leverage that deal to squeeze the others.
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by TruckMan View Post
    Exactly. They can demand more from the strongest company because they have the most and then leverage that deal to squeeze the others.

    I thought I read this a while back. Isn't it true that in the past when GM had >50% market share, they'd make some deals with the UAW that they could afford (at the time) that would only make Chrysler and Ford (and AMC) weaker? If so, that strategy certainly came back to bite them in the butt.

    I wonder if any consultation takes place between the strike target and the other UAW hostages during the initial negotiations. Ford and FCA wouldn't have wanted GM to agree to some deal that would be unfavorable to them.
    Last edited by ksr; 11-01-2019 at 10:44 AM.
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by ksr View Post
    The UAW always picks the healthiest of the Big 3 and then tries to bleed them dry. GM's "own doing" in this case was making a profit and actually trying to scale their business for future needs. Whatever GM gave up in the strike probably only hurts Ford and FCA, since the same basic contract then moves on to the other victims..... I mean companies.
    That is one way to look at it.............


    Quote Originally Posted by TruckMan View Post
    Lost $3B is misleading. That’s potential sales, not profit. They also saved a bunch on material, labor, etc. Sometimes you need short term pain for long term gain.
    No it's not; "GM will lose almost $3 Billion in 2019 Earnings"

    EARNINGS, not sales revenue............ EARNINGS.

    And they also have to dial-back the expected savings from all the gouging they did with plants and workers in the US over the last 12 months.

    How many plants is the UAW making Ford keep open in the US?

    Quote Originally Posted by TruckMan View Post
    Exactly. They can demand more from the strongest company because they have the most and then leverage that deal to squeeze the others.
    Or pin the one that took away the most?..................

    In the end GM is going to get what it wants, maybe by then PSA/FCA will be ready to buy them?
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    Re: UAW Reaches Tentative Agreement with Ford

    Quote Originally Posted by Perian View Post
    Amazing what happens when there are grown-ups in the room.











    .


    I suspect some of the UAW negotiators, including their union president, are looking over their shoulder nervously and beginning to sweat more as the ongoing criminal inventions continue to ensnare their associates.

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