Post by TonyV on Oct 6, 2010 15:45:22 GMT -5
National Ford Council
September 29, 2010
The National Ford Delegates would first like to take the opportunity to
congratulate KTP Building Chairman Scott Eskridge for being elected as a National
Negotiator for the upcoming 2011 contract negotiations. This is a huge honor for not
only Scott, but Local 862 as well.
The National Ford Council met in Washington D.C. on September 29, 2010. The
following is a review of the meeting. UAW Vice President Jimmy Settles welcomed the
delegates and introduced Region 8 Director Gary Casteel. Gary also welcomed the
Council and extended his gratitude for being in Washington to take part in the "One
Nation Working Together March" on 10/2/10. Speaking of the "One Nation Working
Together March" and the upcoming elections, Gary quoted Joe Biden on selecting our
candidates: "Compare our candidates not to the All-Mighty, but to the alternative".
UAW Departmental Reports
Frank Keatts, Administrative Assistant to VP Jimmy Settles- updates on the Equality of Sacrifice
grievance; current status is open, it was heard in 3rd stage and now is up north. The Union asked the company for
updates on salary's compensation and the company did not supply the exact information that the Union wanted. Two
more information requests have been sent and this still does not answer the grievance, so overall it is now waiting to
be heard by an umpire for a decision. As soon as there is a decision the National Ford Department will notify all the
locals immediately with the results.
Bill Eaddy Sourcing Rep- per the 2007 agreement, the company was to in-source 1559 jobs into
our plants, currently the Union has negotiated 2134 with the intent to continue to look at more jobs to bring back. The
significance in this is the Union has showed the company that not only are we getting jobs back to UAW, but it is also
profitable to the company as well. Bill also reported the following statistics involving the population and Job Security
Program:
• As of November 18, 2007, the UAW had 51,453 members.
• As of August 29, 2010, the membership totaled 40,643 which is a twenty-one percent decline.
• As of September 12, 2010, we have 234 members on Indefinite Layoff.
• One hundred and twenty one of these employees have exhausted all SUB/TAP benefits.
• JSP fund as of July 31, 2010, is $627.2 million down from $944 million a 33.6% reduction.
• SUB fund as of July 31, 2010, is $574.7 million down from $918 million a 37.4% reduction.
Floyd Ford, UAW Health & Safety Department- Floyd gave a very in-depth report that started by a review
of the status of the 2007 contract commitments. There were 16 main commitments from the negotiations, 11 of which
have been completed. Five remain open, but all of them are under development and should have no trouble being
completed. The Union and the company have increased focus on Skilled Trades and have changed a lot of
processes. New processes are also being implemented as a result of the death of Ron Cassady, a former KTP
millwright. Floyd also reported that from 2006 to August of 2010, there has been a 27% improvement in serious injury
cases. There has been a 2% improvement on Days Away Restricted Time (D.A.R.T.) cases as well as Lost Time
Case Rate (LTRC). The Health & Safety Hotline calls are lower now than they were since its inception in 2000-01.
Floyd closed his report by going over some of the extensive training that is in the future for both Skilled Trades and
Health & Safety Reps as well.
Brett Fox, Total Cost/Continuous Improvement – Brett's umbrella basically covers S.Q.D.C.M.E. Brett
first talked about Morale. The Union has expressed their concern about the morale of our plants. He has told the
company that "it's broken" and he has asked them to go to the floor as the Union has and interview the people on the
floor. He reported that it is unfortunate that some of the plants with the best products are experiencing a low morale.
The Senior Advisory Continuous Improvement Forum went to the company on 3/30/10 and asked for a 24 hour turn
around. The goal was to initiate the Local Continuous Improvement Forum (LCIF) at each location with the intent to
enhance employee engagement and improve issue resolution. It seems the employees have lost faith in the process
to address their issues. This LCIF should help fix issues that will assist our people in doing their jobs better. There
are 3 meetings that are agreed upon that must happen each month, they are: Quality, Health & Safety and the LCIF.
After the UAW reports, Vice President Jimmy Settles welcomed the company's
representatives into the council. The company representatives attending the meeting were: John
Fleming- Executive Vice President of Global Manufacturing & Labor Affairs; James Tetreault-
Executive Vice President for North American Manufacturing; Marty Mulloy- Executive Vice
President of Global Labor Affairs and Bill Dirksen- Executive Director of US Labor Affairs.
Vice President Settles welcomed the company by stating that Ford is the most transparent
company of the Big Three automakers.
John Fleming the company's Executive Vice President of Global Manufacturing & Labor
Affairs addressed the council by reviewing his career with Ford. Next, John said: "normal
people, under normal conditions, come to normal conclusions." Mr. Fleming gave the following
information on the company's financial condition:
• From 1995 to 2009 Ford Motor Company lost market share.
• From 2001 to May 2008 total vehicle sales dropped from 17.1 million to 10.1
million units.
• From 2001 to 2009 Ford Motor Company lost $49.9 billion.
• Starting in 2009 Ford Motor Company gained market share and made a profit of
$533 million.
• Credited the $23.5 billion mortgage loan with giving the company the needed
cash to stay in business.
Mr. Fleming noted the sacrifices that the membership has made to help the company
and that the company must invest in product programs in the United States. During the crisis of
the Big Three it was reported that the cost of hourly labor was $71; he reported that currently
Ford Motor Company has reduced that cost to $53 per hour compared to $50 for Toyota. This
has made Ford much more competitive. Ford has improved from last in Customer Satisfaction in
2005, to the best. Our TGW/1000 was the worst in 2005, now it is the best. These are areas
where we must stay on top to continue the success that we are now experiencing. Our Market
Share has increased 0.5% since 2009.
Some challenges that the company will face are:
• US economy is in modest recovery
• consumer spending is hampered by credit and finance
• High unemployment
• Under performing housing market
Mr. Fleming stated that vehicle sales have dropped considerably mainly because people
are keeping their vehicles longer. The average age of vehicles has increased to 10 years. Also,
the number of scrapped units currently exceeds the number of sold units.
Mr. Fleming showed that in 1980, there were 2 transplant auto manufacturing facilities in
the U.S., currently between the U.S., Canada and Mexico there are twenty-five transplants. From
1979 through 1999 Ford was the #2 manufacturer. In 2006 Ford Motor Company dropped to #6.
The Koreans are the fastest growing transplant in the U.S. economy. He also explained the
importance of Ford Motor Company's credit rating; currently Toyota can borrow money at 2%
interest and Ford has to borrow at 6% interest. Ford Motor Company has shown a lot of
improvements that can help improve their credit rating soon. He said that Ford Motor Company
still has some debt that is affecting its ability to invest in some new products. In order to continue
to move forward Ford Motor Company must continue to lead in Quality. Ford Motor Company
also must maintain and continue its growth.
At this point he introduced Executive Vice President Jim Tetreault. Mr. Tetreault gave an
update on product commitment; the company has lived up to 27 of 29 product commitments. Mr.
Tetreault continued talking about other issues facing Ford Motor Company, stating that there is
significant over-capacity around the world which creates pressure on price. Ford Motor
Company's competition is increasing all the time. He stated that Ford Motor Company needs to
continue its investment on its brands and products. The meeting concluded with Vice President
Settles thanking them for the information that they shared to the council.
Delegates
Rocky Comito
Scott Eskridge
Rodney Janes
Charlie Jones
September 29, 2010
The National Ford Delegates would first like to take the opportunity to
congratulate KTP Building Chairman Scott Eskridge for being elected as a National
Negotiator for the upcoming 2011 contract negotiations. This is a huge honor for not
only Scott, but Local 862 as well.
The National Ford Council met in Washington D.C. on September 29, 2010. The
following is a review of the meeting. UAW Vice President Jimmy Settles welcomed the
delegates and introduced Region 8 Director Gary Casteel. Gary also welcomed the
Council and extended his gratitude for being in Washington to take part in the "One
Nation Working Together March" on 10/2/10. Speaking of the "One Nation Working
Together March" and the upcoming elections, Gary quoted Joe Biden on selecting our
candidates: "Compare our candidates not to the All-Mighty, but to the alternative".
UAW Departmental Reports
Frank Keatts, Administrative Assistant to VP Jimmy Settles- updates on the Equality of Sacrifice
grievance; current status is open, it was heard in 3rd stage and now is up north. The Union asked the company for
updates on salary's compensation and the company did not supply the exact information that the Union wanted. Two
more information requests have been sent and this still does not answer the grievance, so overall it is now waiting to
be heard by an umpire for a decision. As soon as there is a decision the National Ford Department will notify all the
locals immediately with the results.
Bill Eaddy Sourcing Rep- per the 2007 agreement, the company was to in-source 1559 jobs into
our plants, currently the Union has negotiated 2134 with the intent to continue to look at more jobs to bring back. The
significance in this is the Union has showed the company that not only are we getting jobs back to UAW, but it is also
profitable to the company as well. Bill also reported the following statistics involving the population and Job Security
Program:
• As of November 18, 2007, the UAW had 51,453 members.
• As of August 29, 2010, the membership totaled 40,643 which is a twenty-one percent decline.
• As of September 12, 2010, we have 234 members on Indefinite Layoff.
• One hundred and twenty one of these employees have exhausted all SUB/TAP benefits.
• JSP fund as of July 31, 2010, is $627.2 million down from $944 million a 33.6% reduction.
• SUB fund as of July 31, 2010, is $574.7 million down from $918 million a 37.4% reduction.
Floyd Ford, UAW Health & Safety Department- Floyd gave a very in-depth report that started by a review
of the status of the 2007 contract commitments. There were 16 main commitments from the negotiations, 11 of which
have been completed. Five remain open, but all of them are under development and should have no trouble being
completed. The Union and the company have increased focus on Skilled Trades and have changed a lot of
processes. New processes are also being implemented as a result of the death of Ron Cassady, a former KTP
millwright. Floyd also reported that from 2006 to August of 2010, there has been a 27% improvement in serious injury
cases. There has been a 2% improvement on Days Away Restricted Time (D.A.R.T.) cases as well as Lost Time
Case Rate (LTRC). The Health & Safety Hotline calls are lower now than they were since its inception in 2000-01.
Floyd closed his report by going over some of the extensive training that is in the future for both Skilled Trades and
Health & Safety Reps as well.
Brett Fox, Total Cost/Continuous Improvement – Brett's umbrella basically covers S.Q.D.C.M.E. Brett
first talked about Morale. The Union has expressed their concern about the morale of our plants. He has told the
company that "it's broken" and he has asked them to go to the floor as the Union has and interview the people on the
floor. He reported that it is unfortunate that some of the plants with the best products are experiencing a low morale.
The Senior Advisory Continuous Improvement Forum went to the company on 3/30/10 and asked for a 24 hour turn
around. The goal was to initiate the Local Continuous Improvement Forum (LCIF) at each location with the intent to
enhance employee engagement and improve issue resolution. It seems the employees have lost faith in the process
to address their issues. This LCIF should help fix issues that will assist our people in doing their jobs better. There
are 3 meetings that are agreed upon that must happen each month, they are: Quality, Health & Safety and the LCIF.
After the UAW reports, Vice President Jimmy Settles welcomed the company's
representatives into the council. The company representatives attending the meeting were: John
Fleming- Executive Vice President of Global Manufacturing & Labor Affairs; James Tetreault-
Executive Vice President for North American Manufacturing; Marty Mulloy- Executive Vice
President of Global Labor Affairs and Bill Dirksen- Executive Director of US Labor Affairs.
Vice President Settles welcomed the company by stating that Ford is the most transparent
company of the Big Three automakers.
John Fleming the company's Executive Vice President of Global Manufacturing & Labor
Affairs addressed the council by reviewing his career with Ford. Next, John said: "normal
people, under normal conditions, come to normal conclusions." Mr. Fleming gave the following
information on the company's financial condition:
• From 1995 to 2009 Ford Motor Company lost market share.
• From 2001 to May 2008 total vehicle sales dropped from 17.1 million to 10.1
million units.
• From 2001 to 2009 Ford Motor Company lost $49.9 billion.
• Starting in 2009 Ford Motor Company gained market share and made a profit of
$533 million.
• Credited the $23.5 billion mortgage loan with giving the company the needed
cash to stay in business.
Mr. Fleming noted the sacrifices that the membership has made to help the company
and that the company must invest in product programs in the United States. During the crisis of
the Big Three it was reported that the cost of hourly labor was $71; he reported that currently
Ford Motor Company has reduced that cost to $53 per hour compared to $50 for Toyota. This
has made Ford much more competitive. Ford has improved from last in Customer Satisfaction in
2005, to the best. Our TGW/1000 was the worst in 2005, now it is the best. These are areas
where we must stay on top to continue the success that we are now experiencing. Our Market
Share has increased 0.5% since 2009.
Some challenges that the company will face are:
• US economy is in modest recovery
• consumer spending is hampered by credit and finance
• High unemployment
• Under performing housing market
Mr. Fleming stated that vehicle sales have dropped considerably mainly because people
are keeping their vehicles longer. The average age of vehicles has increased to 10 years. Also,
the number of scrapped units currently exceeds the number of sold units.
Mr. Fleming showed that in 1980, there were 2 transplant auto manufacturing facilities in
the U.S., currently between the U.S., Canada and Mexico there are twenty-five transplants. From
1979 through 1999 Ford was the #2 manufacturer. In 2006 Ford Motor Company dropped to #6.
The Koreans are the fastest growing transplant in the U.S. economy. He also explained the
importance of Ford Motor Company's credit rating; currently Toyota can borrow money at 2%
interest and Ford has to borrow at 6% interest. Ford Motor Company has shown a lot of
improvements that can help improve their credit rating soon. He said that Ford Motor Company
still has some debt that is affecting its ability to invest in some new products. In order to continue
to move forward Ford Motor Company must continue to lead in Quality. Ford Motor Company
also must maintain and continue its growth.
At this point he introduced Executive Vice President Jim Tetreault. Mr. Tetreault gave an
update on product commitment; the company has lived up to 27 of 29 product commitments. Mr.
Tetreault continued talking about other issues facing Ford Motor Company, stating that there is
significant over-capacity around the world which creates pressure on price. Ford Motor
Company's competition is increasing all the time. He stated that Ford Motor Company needs to
continue its investment on its brands and products. The meeting concluded with Vice President
Settles thanking them for the information that they shared to the council.
Delegates
Rocky Comito
Scott Eskridge
Rodney Janes
Charlie Jones