When GM and Chrysler were essentially bought out by the federal government, a lot of us predicted that the end result would most likely be bad for the auto industry as a whole, and the American people in general.
We were too optimistic.
The Obama administration has not been noted for its excessive loyalty to its supporters, but it's been very, very good to the unions that helped it win power. And it isn't just the SEIU -- the United Auto Workers have been getting some very nice dividends on their investment. As part of the buyout/bailout/whatever, the unions got a nice little ownership stake in GM and Chrysler.
Ford, as you'll recall, refused any bailout money. And now they must be punished for insisting on their independence.
Customarily, when the UAW opens contract negotiations, they pick their targets carefully. They figure which of the big three will give them the best deal and go after them, then use that agreement as leverage with the next two.
Not this time. Since they are on both sides of the negotiating table with GM and Chrysler (both directly and through their buddies in the Obama administration), they don't have to worry much about those deals. But Ford, on the other hand... they must be held to a far higher standard. They must make greater concessions to keep the peace with their workforce.
Think about that for a minute. The UAW is a part-owner of GM and Chrysler, so they are in essence negotiating with themselves. On the other hand, when they are negotiating with Ford, they are not only representing Ford's workers, but they are also there as owners of Ford's competitors. It's in the union's best interests to harm Ford -- but it's also their legal obligation to do the best they can for Ford's workers.
This is a gross conflict of interest.
But I feel fairly comfortable that the Obama justice department -- which cheerfully threw away an already-won case of voter intimidation in Philadelphia by Obama supporters -- will find something else more pressing to attend to.
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Comments (11)
Reminds me of the old sayin... (Below threshold)1. Posted by Michael Laprarie | October 21, 2009 7:16 AM | Score: 5 (7 votes cast)
Reminds me of the old saying ... the day the workers' union owns the company is the day the workers will need a new union.
1. Posted by Michael Laprarie | October 21, 2009 7:16 AM |
Score: 5 (7 votes cast)
Posted on October 21, 2009 07:16
2. Posted by bobdog | October 21, 2009 9:13 AM | Score: 5 (5 votes cast)
Americans have figured this out, as evidenced by GM's sales numbers.
It's the quietest boycott in history.
2. Posted by bobdog | October 21, 2009 9:13 AM |
Score: 5 (5 votes cast)
Posted on October 21, 2009 09:13
3. Posted by epador | October 21, 2009 9:42 AM | Score: 2 (2 votes cast)
Jay, see next post for an answer.
3. Posted by epador | October 21, 2009 9:42 AM |
Score: 2 (2 votes cast)
Posted on October 21, 2009 09:42
4. Posted by Tim | October 21, 2009 10:16 AM | Score: 3 (5 votes cast)
Ford should fire 'em all and start over. Lot of people looking for work, I'm told.
4. Posted by Tim | October 21, 2009 10:16 AM |
Score: 3 (5 votes cast)
Posted on October 21, 2009 10:16
5. Posted by JustRuss | October 21, 2009 10:31 AM | Score: 2 (4 votes cast)
If it keeps up Ford should move completely out of the country to avoid making a deal with the devil. I do NOT want to see all those jobs lost for Americans but you CANNOT let the UAW negotiate contracts for someone it is directly competing with!
OR
The Ford Workers need to form a new union completely separate from the UAW to avoid this inevitable scenario. Are current union members allowed to vote to unionize? How do the pro-union people feel about that?
5. Posted by JustRuss | October 21, 2009 10:31 AM |
Score: 2 (4 votes cast)
Posted on October 21, 2009 10:31
6. Posted by mojo | October 21, 2009 10:54 AM | Score: 1 (3 votes cast)
Don't suppose they could just dump the union, huh? Didn't think so. Take too long to hire new non-union workers.
Pity.
6. Posted by mojo | October 21, 2009 10:54 AM |
Score: 1 (3 votes cast)
Posted on October 21, 2009 10:54
7. Posted by Meiji_man | October 21, 2009 11:13 AM | Score: 1 (1 votes cast)
If the ownership of Ford had a pair they could spin this to their advantage.
"For over a hundred years the Ford Motor Company has built vehicles for the American People. Our Model-T brought an affordable vehicle to the masses, and our first owner Henry Ford, believed that high, competitive wages allowed his employees the quality of life they desired, and made for a steady stream of future customers.
After World War Two, when American Soldiers came back from war, we put them to work, and sold some of the most legendary vehicles known today. Meeting the desires of the American people once again.
We here at Ford, believe in America. We believe in Americans and that a free people will make the best choices for themselves. We are proud of our legacy, our heritage, and will continue to produce the best vehicles that we believe Americans want.
Ford Motor Company: Exceptional Vehicles, for an Exceptional Country. "
7. Posted by Meiji_man | October 21, 2009 11:13 AM |
Score: 1 (1 votes cast)
Posted on October 21, 2009 11:13
8. Posted by Nancy's Nazi | October 21, 2009 12:20 PM | Score: 1 (1 votes cast)
Jay, in addition GM and Chrysler (thru there govt and union masters) will have the National Labor Relations Board at their disposal to use as a hammer against Ford.
Think "death panel" for car companies.
8. Posted by Nancy's Nazi | October 21, 2009 12:20 PM |
Score: 1 (1 votes cast)
Posted on October 21, 2009 12:20
9. Posted by GarandFan | October 21, 2009 1:31 PM | Score: 1 (1 votes cast)
"Ford should fire 'em all and start over. Lot of people looking for work, I'm told."
Exactly! Given the unemployment figures in Detroit and the current state of the economy, I don't think union demands will get much traction.
9. Posted by GarandFan | October 21, 2009 1:31 PM |
Score: 1 (1 votes cast)
Posted on October 21, 2009 13:31
10. Posted by John | October 21, 2009 2:11 PM | Score: 0 (2 votes cast)
Anyone who would think the thieves and thugs of the UAW would just be satisfied by screwing up only 2/3 of the auto industry is sadly mistaken. The thugs want to control all of it even though they have proven with GM and Chrysler that they can not manage a hot dog stand. The foreign auto plants in this country that were smart enough to build their plants in "Right to Work States" are doing very well, because they kept the UAW out. The unions now are pushing for the card check bill so they can get their thug into the businesses that are successful and ruin them, just so they can have the power.
I will never again buy a GM (Government Motors) or Chrysler product again. I will not provide any support for the nationalized auto industry or the corrupt unions.
10. Posted by John | October 21, 2009 2:11 PM |
Score: 0 (2 votes cast)
Posted on October 21, 2009 14:11
11. Posted by DavidD | October 21, 2009 10:59 PM | Score: 0 (0 votes cast)
Sounds like a good time for Ford to refuse to negotiate with the UAW. With all the unemployment in Michigan, they should be able to find plenty of non-union people who are willing to do the job.
11. Posted by DavidD | October 21, 2009 10:59 PM |
Score: 0 (0 votes cast)
Posted on October 21, 2009 22:59