UAW turns to deal with Ford challenge

< Prev | 1 | 2

LIVE QUOTE

Data: MSN Money and IDC Comstock delayed 20 min.

Interactive

What’s new for 2009?
From splashy sports cars, to new pickups and thrifty hybrid vehicles, here are the highlights for the 2009 model year.

Earlier Saturday, 55 percent of workers at Cole’s plant, which was the last plant to vote, opposed the contract, according to a person who was briefed on the vote. The person requested anonymity because the person wasn’t authorized to speak on vote totals.

“Our members had to face some tough choices, and we had a solid, democratic debate about this contract,” UAW President Ron Gettelfinger said in a statement. “Now we’re going to come together as a union — and now it’s on the company to move ahead, increase their market share and continue to build great cars and trucks here in the U.S.”

As recently as Tuesday the pact was losing after large locals in Kokomo, Ind., voted it down, but workers at four Michigan assembly and stamping plants in Sterling Heights and Warren had a strong turnout on Wednesday and voted largely in favor. The Sterling Heights and Warren votes pushed the favorable vote ahead.

Story continues below ↓

Gary Chaison, a labor specialist at Clark University in Worcester, Mass., said the UAW turned things around with heavy lobbying at the remaining plants.

“They put forth the view, very effectively, that this was the best they could do at the time,” Chaison said. “It’s not that this was a strong agreement, but that if we reject the agreement, we’re going into a world of uncertainty.”

Chaison said many workers felt it wasn’t a good time for a fight. Chrysler became a private company in August, when the private equity firm Cerberus Capital Management LP bought a controlling stake in the automaker. It has recently overhauled management and is reviewing its products.

Chaison said Ford will likely try to head off opposition to the contract with carrots such as a profit-sharing plan. But he said Ford could still face a strike as the UAW tries to show workers it is bargaining hard.

“Nowadays, you have to have a strike in order to convince the workers you did all you could,” Chaison said. “Ford is going to be asking for some major wage concessions from the union and they won’t be able to guarantee future work.”

But Aaron Bragman, an auto industry analyst with Global Insight, said he doesn’t think the contentious nature of the Chrysler ratification will carry over to Ford. Ford workers already have agreed to competitive operating agreements to cut costs at plants, and they recognize the company is in trouble, he said.

“Ford plants are already in the mind-frame that the company needs help and we’re going to be able to provide it,” Bragman said.

Ford spokeswoman Marcey Evans would not comment on the ongoing negotiations.