Post by TonyV on Dec 19, 2009 15:44:29 GMT -5
Last Updated: December 19. 2009 1:02AM
Ford execs say they'll live with UAW contract
Experts say biggest disadvantage is lack of strike protection
Bryce G. Hoffman / The Detroit News
Wayne -- Ford Motor Co.'s top executives said Friday that they were "disappointed" with the overwhelming rejection of proposed contract changes by United Auto Workers members last month.
Ford had hoped to match some of the concessions the UAW negotiated with rivals General Motors Co. and Chrysler Group LLC during their bankruptcy reorganizations earlier this year.
But they said Ford has closed the labor cost gap with its foreign competitors in the United States and does not expect to seek another reopening of the contract before it expires in 2011.
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"I would have liked to see it happen, but I understand all the behind-the-scenes things that were in play," said Executive Chairman Bill Ford Jr. "The truth is, we've gotten a whole lot done together in the past three years. This is not the end of the world."
Ford also said he was happy with the decision by UAW leaders to anoint Vice President Bob King, head of the union's national Ford section, as the heir-apparent to UAW President Ron Gettelfinger.
"I've known Bob for a long time. He cares very deeply for the industry and for Ford," he said, adding that he does have a different approach than Gettelfinger. "Ron is very plain-spoken and gets to the point quickly. Bob is more cerebral."
Ford's comments were echoed by Ford Americas President Mark Fields.
"We respect Bob a lot," he said. "We're going to continue to work with Bob and the rest of the UAW team to make sure Ford remains competitive. We don't just talk to the UAW when we have an issue. We talk to the UAW every day, every week, about the challenges we face as a business and our strategy for overcoming those challenges."
The union's powerful administrative caucus endorsed King's candidacy last week. He still needs to be elected by rank-and-file members at the UAW's national convention next summer, but no candidate endorsed by that caucus has ever failed to win the presidency.
The agreement UAW members voted down last month would have frozen wages and benefits for new hires, changed some work rules and limited the union's right to strike over some issues.
Labor experts said the vote against the tentative agreement negotiated between the company and union leaders was doomed by Ford's success relative to the rest of Detroit's automobile industry. The company has surprised Wall Street with profits for each of the last two quarters, though it is still expected to lose money this year.
While analysts agree that Ford has little cost disadvantage with other automakers in the United States because of its failure to win approval for these contract changes, many worry that the lack of strike protection similar to that won by GM and Chrysler will put a target on Ford in the next round of national contract talks.
"The biggest threat to Ford from this is that the UAW is more likely to strike it because it can't strike GM or Chrysler," said Erich Merkle of Autoconomy.com.
In other news Friday, Ford CEO Alan Mulally said he feels "pretty good about the economy," adding that the company will "maintain a laser focus on our plan" in 2010.
As for 2009?
"What a year!" Mulally said.
Ford execs say they'll live with UAW contract
Experts say biggest disadvantage is lack of strike protection
Bryce G. Hoffman / The Detroit News
Wayne -- Ford Motor Co.'s top executives said Friday that they were "disappointed" with the overwhelming rejection of proposed contract changes by United Auto Workers members last month.
Ford had hoped to match some of the concessions the UAW negotiated with rivals General Motors Co. and Chrysler Group LLC during their bankruptcy reorganizations earlier this year.
But they said Ford has closed the labor cost gap with its foreign competitors in the United States and does not expect to seek another reopening of the contract before it expires in 2011.
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"I would have liked to see it happen, but I understand all the behind-the-scenes things that were in play," said Executive Chairman Bill Ford Jr. "The truth is, we've gotten a whole lot done together in the past three years. This is not the end of the world."
Ford also said he was happy with the decision by UAW leaders to anoint Vice President Bob King, head of the union's national Ford section, as the heir-apparent to UAW President Ron Gettelfinger.
"I've known Bob for a long time. He cares very deeply for the industry and for Ford," he said, adding that he does have a different approach than Gettelfinger. "Ron is very plain-spoken and gets to the point quickly. Bob is more cerebral."
Ford's comments were echoed by Ford Americas President Mark Fields.
"We respect Bob a lot," he said. "We're going to continue to work with Bob and the rest of the UAW team to make sure Ford remains competitive. We don't just talk to the UAW when we have an issue. We talk to the UAW every day, every week, about the challenges we face as a business and our strategy for overcoming those challenges."
The union's powerful administrative caucus endorsed King's candidacy last week. He still needs to be elected by rank-and-file members at the UAW's national convention next summer, but no candidate endorsed by that caucus has ever failed to win the presidency.
The agreement UAW members voted down last month would have frozen wages and benefits for new hires, changed some work rules and limited the union's right to strike over some issues.
Labor experts said the vote against the tentative agreement negotiated between the company and union leaders was doomed by Ford's success relative to the rest of Detroit's automobile industry. The company has surprised Wall Street with profits for each of the last two quarters, though it is still expected to lose money this year.
While analysts agree that Ford has little cost disadvantage with other automakers in the United States because of its failure to win approval for these contract changes, many worry that the lack of strike protection similar to that won by GM and Chrysler will put a target on Ford in the next round of national contract talks.
"The biggest threat to Ford from this is that the UAW is more likely to strike it because it can't strike GM or Chrysler," said Erich Merkle of Autoconomy.com.
In other news Friday, Ford CEO Alan Mulally said he feels "pretty good about the economy," adding that the company will "maintain a laser focus on our plan" in 2010.
As for 2009?
"What a year!" Mulally said.
