UAW and Ford have reached a contract agreement! [WARNING: NO POLITICS]

[amurphy9276]

I work for a railroad that used to be union. We are so much happier since we voted the union out. In the comments I read about poor quality and things like that. All the union did for us was make sure that people who shouldn't have been working there got to keep their jobs. Our productivity skyrocketed when we voted the union out. We are a shortline but we got rid of 12% of our workforce when we got rid of the union. It was better for us all the way around.

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[cr117]

the union was relevant and needed back in the day. Today it's only function is to make more money.

I have family members that are union in the auto industry. When I asked them their take it was simply, "I came from high school straight into the union. Where else can I make as much as a 4 year college grad with no extra skills? All I have to do is show up and pretend to care". Exact quote.

I will never understand or accept the UAW way. Why does less than 10% of the sector workforce get to dictate who goes to work? It is an unfair advantage for the UAW or any other union to stop working because they no longer like something - such as pay, while forcing the nonunion workers in the same industry to stop earning. This is magnified when the UAW has such a small percentage of the auto industry workforce. Fine have the grievance but keep working, while solving the issue. Can't solve the issue, go find someone better to work for if it's so bad.

The UAW worker took the job and knew what it paid when they accepted the work, they don't like it find other work that pays better. Go to school, improve yourself, start you own business. Show initiative and do something. This is where I dislike the union model, it undermines the industry and there is no way around it for the OEM's that have UAW agreements in place, unless they take work out of Canada / US. The foreign OEM's don't have UAW for a good reason.

Quite a bit to unpack here.

Unions like the UAW emerged in response to dire working conditions, long hours, and low wages. They played a pivotal role in achieving significant labor rights, better wages, and safer working conditions (you're welcome). I get your argument of the diminished role of unions today. However, without union representation, these gains could be eroded over time.

The fact that some unionized jobs pay well without requiring a college degree is a feature, not a bug. Not everyone should have to obtain a college degree to earn a living wage, especially in sectors that generate significant profits. If your family members are getting by with "showing up and pretending to care", hey, maybe that's all their employer needs out of them. However, most with this mentality generally don't advance their career all that much.

The idea that a small percentage of the workforce can have an outsized impact on an industry is indeed a struggle, I'm not arguing against that. Strikes can halt production, impacting non-union workers and other sectors of the economy. Yet, this collective power is precisely what gives unions leverage in negotiations.

While workers may accept a job at a certain wage, the cost of living, inflation, and company profitability can change over time. If a company is more profitable, there's the argument that workers should share in that success, especially if wages have stagnated or not kept pace with inflation.

You mentioned "go find someone better to work for if it's so bad" which is the exact point I was trying to make earlier. The thing is though, these UAW workers took these jobs with the belief that the union would have their back if change was needed. If suppliers want to rely on a unionized shop for revenue, that's on them. Just like the people that work for that supplier, they're free to go partner with whoever they want. They should be aware of those risks.

Foreign auto manufacturers often set up plants in RTW states for various reasons, including lower labor costs. I'm not saying those working in factories in other states are necessarily being exploited, but some would prefer having the protection of the union to make that possibility less likely.

 

[Russ1Bronco]

I can tell you first hand that the quality of my '15 Mustang is far better than that of my '19 F150.

With that progression in mind, not to mention what I see on this board, I wonder why I'm even entertaining the idea of buying a Bronco at all. Keep My Jeep is becoming my mantra...

...The Mustang plant was voted number 1 in Ford quality for many years...my Shelby..0 problems..

 

[Callelk]

Are you saying that there are no subsidies to the petroleum industry? Why do you think the rest of the world pays $8 a gallon?
https://generation180.org/blog/the-absurd-truth-about-fossil-fuel-subsidies/

I’m sorry that you are not aware that most EU countries pay well over $3.00 US per gallon for JUST the EU tax. Add another $2.00 per gallon excise duties and it’s easy to see $8.00 gas. I trust that you are not under some delusion that the EU countries don’t subsidize industry. Do you recall the steel dumping suits of the 70’s, 80’s and 90’s? Don’t even get me started on the AG subsidies.

 

[Callelk]

I’m sorry that you are not aware that most EU countries pay well over $3.00 US per gallon for JUST the EU tax. Add another $2.00 per gallon excise duties and it’s easy to see $8.00 gas. I trust that you are not under some delusion that the EU countries don’t subsidize industry. Do you recall the steel dumping suits of the 70’s, 80’s and 90’s? Don’t even get me started on the AG subsidies.

Almost forgot VAT tax on top of the other taxes.

 

[AttackGuy64]

A $1000 a day isn’t worth it? Wish I had your throw away money.

I am semi retired, fully retired from the Army, have owned several companies, and now work in an executive position at a large firm. We value our time more than money.

 

[cr117]

I am semi retired, fully retired from the Army, have owned several companies, and now work in an executive position at a large firm. We value our time more than money.

You're kinda making his point...

 

[JBlanco]

Ah, why do you think they pay more for food utilities housing clothing? I’ve traveled all over the world and in the 70s Germany with a lot more expensive than it ever was in the United States and that hasn’t changed. what would you think of paying $.95 a kilowatt hour for electricity? Would you still buy an electric car?

BS. I have also traveled the world many times over and last months I spent three weeks in Spain and Portugal. The cost of living there is much lower there to the point I hired an immigrations lawyer to learn more about retiring early there.

 

[flip]

From Autonews:


Ford Motor Co. on Thursday said the UAW's 41-day strike cost the automaker $1.3 billion, effectively wiping out $1.2 billion in third-quarter net income.

Ford CFO John Lawler said the strike, which ended late Wednesday after reaching a tentative agreement with the union that gives workers 25 percent raises over the next four and a half years, canceled production of 80,000 vehicles. The deal will increase Ford's labor costs by $850 to $900 per vehicle, Lawler said, reducing margins by six or seven tenths of a percentage point.

About $100 million of the strike's cost was in the third quarter, allowing Ford to post a third-quarter net profit after an $827 million loss a year earlier. But the strike cost Ford $1.2 billion in the fourth quarter, and the automaker withdrew its full-year guidance as it waits for Ford's 57,000 UAW members to vote on the agreement.


The automaker said its third-quarter adjusted earnings before interest and taxes rose 22 percent to $2.2 billion, and revenue rose 11 percent to $44 billion.

Earnings for the Ford Pro commercial unit and Ford Blue internal combustion business unit rose to $1.7 billion each, while the Model e electric vehicle business unit lost $1.3 billion — more than double its year-ago loss.

Ford said it had been on track to deliver on its previous guidance of adjusted EBIT between $11 billion to $12 billion but withdrew the projections due to the effects of the UAW strike and its pending agreement with the union.

The tentative deal announced Wednesday, which must still be approved by UAW leaders and workers, would give Ford's immediate 11 percent raises, restore cost-of-living adjustments and cut the path to top wages down to three years from eight.

 

[flip]

And...

Ford Motor Co. likely will take weeks to resume full production in Michigan, Illinois and Kentucky after reaching a tentative agreement with the UAW that ended a 41-day strike Wednesday evening.

Employees were called off picket lines shortly after the deal was reached, and many have been placed on temporary layoff as they await notification to return to work in the coming days, according to some who spoke with Automotive News.

That slow restart could add to Ford's financial losses from the strike, which J.P. Morgan estimated Thursday at slightly more than $1 billion. Ford released its third-quarter results Thursday afternoon, which included net income of $1.2 billion, but it was unclear whether executives will provide additional details on the tentative deal.


The UAW late Wednesday said the pact, which must be approved by union leadership and ratified by a majority of its 57,000 members at Ford, includes larger wage increases over the next four and a half years than members have received in the past 22 years combined.

Workers will receive a cumulative 25 percent wage increase, including 11 percent upon ratification. With the return of a cost-of-living adjustment, the overall increase is expected to equal 33 percent, the union said.

The deal also reduces the time for new hires to reach top wages to three years from eight, improves pension and 401(k) plans, and grants the right to strike over plant closures, which the union says is a first. UAW officials said temporary workers, who start at about $16 per hour, will see a 150 percent increase by the end of the deal, and workers at two Ford plants who receive lower wages will see raises of 85 percent as they are brought on the same pay scale as other assembly employees.

"The UAW tentative agreement with Ford will indeed be lucrative for many UAW members, particularly those in temporary positions or currently in progression toward the top pay bracket," Patrick Anderson, CEO of the Anderson Economic Group, said in a statement.

"It represents a stunning victory for UAW President Shawn Fain, who successfully pressured some of the world's largest companies to give them immediate wage increases, cost-of-living allowances, and work rule concessions that will be the envy of workers in other industries."

Bank of America analyst John Murphy, in a research note Thursday morning, said the contract will increase labor costs and potentially spur investment in lower-cost countries. He expects GM and Stellantis to match much of what Ford agreed to.

"In our view, the companies will be more likely to build future plants and facilities outside of the U.S.," Murphy wrote.

‘Turning the tide'
UAW President Shawn Fain, in announcing the tentative deal Wednesday night, said it has more than four times the gains obtained in the 2019 contracts. Since the strike started Sept. 15, Ford increased the value of its offer by 50 percent, he said.

"This agreement sets us on a new path to make things right at Ford, at the Big 3, and across the auto industry," Fain said. "Together, we are turning the tide for the working class in this country."
Fain said the union would call local leaders to Detroit this weekend to approve the deal, which will then go to members for ratification. He said the union would distribute detailed information to members Sunday night.

The strike, which has lasted longer than the UAW's 2019 work stoppage against General Motors, had hit Ford the hardest of the Detroit 3.
Roughly 16,600 UAW members were on strike at Ford, more than at GM and Stellantis. And Ford was forced to lay off more workers than the other automakers.
The union is continuing its strike against GM and Stellantis, with about 14,400 workers picketing at each company.

GM on Tuesday said the strike had cost it $800 million so far.
Ford on Oct. 3 offered the UAW raises totaling 23 percent, with workers getting a double-digit increase upon ratification and annual increases through 2027.

About a week later, the union ordered 8,700 workers at Ford's Kentucky Truck Plant, the company's most profitable assembly operation, to walk off the job. Ford COO Kumar Galhotra told reporters in subsequent days that the company had "reached our limit" on what it could offer the union without compromising its ability to remain competitive.

Bargaining between Ford and the union intensified Tuesday. Ford agreed to match the union's demand for a 25 percent raise, so negotiators spent much of Wednesday hammering out final details before announcing the news that evening.

 

[thedrdonna]

The deal will increase Ford's labor costs by $850 to $900 per vehicle,

There it is. This is a huge nothing-burger, when it comes to pricing. Of course, when they raise prices by another $5k (presumably to benefit that most precious and delicate of creatures, the Shareholder), I bet there will be plenty of belly-aching about those dastardly unions.

 

[thisisliam]

Great! I'm glad this looks like it's winding down.

Now, lets get some scheduling emails sent out!

 

[AZ_Liberty]

...Back when I worked on the line..cars were painted by hand..even though they had a mask on..I wonder how many of those guys are gone now...spending 8+ hours in a paint booth..

I know when I worked as a cabinet maker (forced union job) the painter's had their own separate union, and their pension fund was very, very flush compared to ours. And yeah, it was because they didn't live that long in retirement.

Paint fumes didn't bother me nearly as much as the formaldehyde in the particle board.

 

[broncobase1]

Are you saying that there are no subsidies to the petroleum industry? Why do you think the rest of the world pays $8 a gallon?
https://generation180.org/blog/the-absurd-truth-about-fossil-fuel-subsidies/

" Why do you think the rest of the world pays $8 a gallon? " It's called TAXES. The raw cost of fuel is global and the same all over the world. In the USA the feds take about 20 cents/gallon (somewhat lower for gas and higher for diesel). In California the state take is 80 cents/gallon. In addition there are local taxes. In Europe the gov't take is crazy high, that's the difference. You can read any garbage on the Internet.

 

[Fishwrinkle]

I am glad there has been an agreement and all people effected by this strike are back to work. I feel for the members of smaller unions that don't reap the bennies that larger do, but hopefully that changes. All I can say is be active in meetings and vote. I'm fortunate that i belong to an international union allowing me to travel for work and we have a great package. As with any entity that's involved with large sums of money corruption will follow at times. Ironically, this week a Detroit business agent and trustee tried sneaking in a raise without a vote and within a month the international flew in to walk them out.

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