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Ford’s success comes at a price
Ford’s success comes at a price
Posted Monday, Oct 26, 2009, 3:39 pm in Employee News
As Ford Motor Co. prepares to report financial results next Monday that several analysts predict will be positive or edging closer to break-even, Ford’s growing success is complicating efforts to extract more cost savings from the UAW, the Detroit Free Press reported.
Ford’s 41,000 UAW workers are voting on tentative contract changes through the end of this week—or before Ford reveals its third-quarter performance, the paper said. Autoworkers have told the Free Press that they don’t believe Ford really needs to modify the existing labor contract.
Instead, Ford has managed to gain momentum during this historic recession, the paper said. Through the first half of the year, Ford has eked out a profit of $834 million, although much of that was because of special onetime charges, the paper noted. Executive Chairman Bill Ford acknowledged the challenges in getting the UAW to approve a new deal right now. Said Ford: “There is no question the timing is bad.”
Ford executives have told UAW workers that they need the changes in order to remain competitive with General Motors Co. and Chrysler Group LLC, which obtained better labor deals during their troubles earlier this year, the story said. (Detroit Free Press)
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Rick
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