UAW Turns Its Attention to Ford
DEARBORN (WWJ) -- In a surprising change of strategy, the United Auto Workers Union has put its talks with Chrysler on hold, and decided to pursue a deal with Ford instead.
"The UAW will focus its attention on Ford Motor Co. in negotiations for a tentative agreement," read a brief emailed statement from the UAW late Wednesday evening.
The announcement came about two hours after the union and Chrysler announced that the deadline at that auto company—which had originally been extended just a week—was now being extended to October 19th.
Originally the union had hoped to follow up its tentative deal at General Motors with a quick settlement at Chrysler. A missed meeting and a terse letter from Chrysler CEO Sergio Marchionne raised tensions. That was followed by a statement from Marchionne in Europe earlier this week that Chrysler couldn't afford some of the things General Motors agreed to, including $5000 signing bonuses for workers.
In addition to that, Automotive News reported that Chrysler was seeking labor cost guarantees from the UAW that went beyond what was agreed to at General Motors.
After explaining the GM deal on Tuesday, UAW President Bob King said that he intended to make the pattern worked out at GM fit at both Ford and Chrysler.
"Everybody's got a different definition of pattern," said King. "We will take the framework here and go to Ford and go to Chrysler, and we think it's a framework that will work for all three companies."
"Pattern never means cookie cutter," said Kristin Dziczek, who follows labor for the Center for Auto Research. "The UAW has signaled all along that they are mindful and understanding of the companies' different business situations. I don't think they are going to provide any advantages that are going to make them compete on labor, but they are going to be mindful of differences that may be required to make this agreement fit."
Dziczek updated the auto talks in a presentation to the Automotive Press Association. She said even though Ford workers authorized a strike, a walkout is unlikely.
"At Ford, I think we'll see a pattern agreement, with almost no chance of a strike."
Ford is the most profitable of the three domestic car companies. But, it also has the highest labor costs, which it's looking to reduce.
There is also friction between Ford and the UAW over benefits that were restored to salaried employees, but not union employees.
There is also the question over the future of several Ford plants, including a truck plant in Minnesota, an engine plant in Ohio, and the factory in Flat Rock that builds the Mustang. That plant is operating under capacity, now that Ford's former partner Mazda has backed out.
The plants location, near Ford's headquarters, and, says Dziczek, the fact that it's fairly modern are working in its favor. But, she says, Ford won't want to make a commitment until it finishes negotiations.
"I don't think they are really in danger," she said. "They'll get something."
The UAW has not set any kind of deadline at Ford. It's working on an indefinite extension, and must give three days notice if it wishes to cancel the extension.
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