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A third factory rejects Ford's (F) tentative agreement with the United Auto Workers union. Local...

A third factory rejects Ford's (F) tentative agreement with the United Auto Workers union. Local 892, which represents workers at an interior-parts plant in Saline, Mich., votes no after two local unions shot down the contract earlier this week. Opponents say the contract lacks a real wage increase to fight inflation and allows Ford to continue its liberal use of contract workers.
Comments (22)
  • Financial Insights
    , contributor
    Comments (945) | Send Message
     
    Are you kidding me?
    14 Oct 2011, 11:50 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    The Unions continue to show that they do not understand the real world in which we all live. There are hundred of thousands if not millions of Americans who would take these jobs in a heartbeat and they continue to cling to the past.
    14 Oct 2011, 11:53 AM Reply Like
  • Terry330
    , contributor
    Comments (866) | Send Message
     
    Yes, the GOP new jobs come with food stamps, medicade, public housing, and not paying any federal taxes.
    14 Oct 2011, 12:10 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    It's difficult to respond to your incoherent responses.
    14 Oct 2011, 01:43 PM Reply Like
  • Clyde Capps
    , contributor
    Comments (35) | Send Message
     
    The unions need to use some common sense,but the CEOs and upper mgnt. are killing these companies. Look what they "drag out" every year,then when they run the co. into the ground they get fired and run away with millions!!!!! Common sense has left this country,nothin but greed is left !!!!!!!!!!!!!!!
    15 Oct 2011, 04:15 PM Reply Like
  • Tdot
    , contributor
    Comments (3572) | Send Message
     
    Clyde - Is that relevant to Ford - or were you referring to the other companies?

     

    It is pretty well universally recognized and understood (except of course by Ford's union) that Alan Mulally and his team, with Bill Ford's (and the Ford Family) approval, absolutely saved the company from utter bankruptcy and probable liquidation or merging or selling to foreigners, while GM and Chrysler were sinking into bankruptcy themselves.

     

    Ford was in dire straights even before the disastrous collapse of 2008, but Ford managed to pull together long term financing ($24B in new cash money from the banks. Ford also received another $6B from the Department of Energy loans for production of high efficiency vehicles and conversion of plants) during the banking system and automotive collapse that took out GM and Chrysler. If it were not for Ford mortgaging itself, including the Blue Oval itself, it would have been the third wheel and very much up for elimination.

     

    As it turns out, with the loans Ford had adequate cash (for themselves) to weather the downturn and begin revamping the product lineup. And according to the book "Once Upon a Car", GM's then CEO Rick Wagoner came to see Bill Ford and Alan Mulally in July 2008 at Ford's World Headquarters, to propose a merger of the three US car companies. Bill and Alan quickly realized during the discussion that GM was essentially out of cash and losing massive money by the day, and only had eyes on exploiting Ford's $30B cash pile. When they asked Rick who would be "in charge" of the new Combined GM-Ford company, Rick said himself of course, since GM was significantly "bigger" than Ford. Rick was promptly (but courteously) shown the door.
    16 Oct 2011, 09:27 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    "Opponents say the contract lacks a real wage increase to fight inflation and allows Ford to continue its liberal use of contract workers."

     

    Translation: it's not so bloated with union benefits that it will make it impossible for Ford to stay in business and make a profit for its shareholders. Therefore, it must be rejected.

     

    Go ahead and reject it, folks. Then just watch as Ford *really* increases its use of contract workers.
    14 Oct 2011, 11:58 AM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5692) | Send Message
     
    I'm not worried. My guess is there are differences that can be narrowed between this and what GM and Chrysler agreed to previously, and that a deal will get done.

     

    Workers don't want a strike. They want the best deal possible. Is this the best deal possible? I haven't read it. But I suspect from the votes that GM and Chrysler offered more.
    14 Oct 2011, 01:31 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Actually, the UAW is demanding more from Ford. Presumably because Ford did not have to go through bankruptcy and continued to pay its Executive bonuses for steering it around the problems of GM and Chrysler.
    14 Oct 2011, 01:45 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5692) | Send Message
     
    I don't think they're going to get more without a strike, and I don't think they're going to strike, either.
    14 Oct 2011, 02:27 PM Reply Like
  • sandykoz
    , contributor
    Comments (12) | Send Message
     
    Since GM and Chrysler went bankrupt their Unions were "stuck" with large blocks of company stock. Why would a union strike a company it owns. Also, under the settlement agreements, the unions cannot strike at GM or Chrysler during this round of contracts. Ford is going to be the union target this time and into the future, unless the unions are forced to divest themselves of their stock holdings in the companies with whom they negotiate. Long term, Ford could be forced into more foreign production, even now they are offering a better contract than GM or Chrysler.
    16 Oct 2011, 04:17 AM Reply Like
  • Tdot
    , contributor
    Comments (3572) | Send Message
     
    Actually, a very large block of Ford's UAW's pension / VEBA trust fund is also tied up in Ford stocks and bonds as well. This is one of the reasons why the number of Ford's outstanding common shares on the market has roughly tripled in dilution over the last 12 years - from a little over a billion shares then to 3.8 billion shares now: massive awards of common stocks in lieu of cash payments. And it is another reason why Ford share prices have been in the dumps, at about a third of what they should be.
    16 Oct 2011, 08:43 AM Reply Like
  • Muzzmatrix
    , contributor
    Comments (13) | Send Message
     
    Like I said 2 weeks ago, what do you think Ford CEO Alan Mulally was doing during his tour of China? Long term vision followed up by long term planning. The hefty UAW bonuses are simply a way of saying, "Let Them Eat Cake".
    14 Oct 2011, 12:22 PM Reply Like
  • Tdot
    , contributor
    Comments (3572) | Send Message
     
    Alan was in China to promote engineering, producing, and selling Ford cars and trucks there and all around the Asian, African, and Pacific markets; not building them there and then importing and selling them in the US. China's automotive industry is rapidly growing and profitable, and Ford wants a bigger piece of the action.

     

    China essentially forbids importing completed vehicles, and demands a very large percentage of the components and assembly work, so there is no point in attempting to export vehicles to China. Besides, US-made cars are prohibitively expensive overseas, aside from a few special orders.

     

    Ford has engineering teams working in China trying to help the Chinese learn how to build automobiles that meet safety, performance, and environmental regulations. The indigenous Chinese vehicles currently on the road are maybe 40-50 years behind in many regards, and they are very intent on rapidly catching up with the West.

     

    As for the US, Alan would be very interested in tapping into Chinese mass production of less expensive global commodities and simple components, such as spark plugs, windshield wiper blades, springs, shock absorbers, light bulbs, tires, brake pads, and other items that you can buy cheaply at any Walmart or auto parts store. But first, Ford needs to make very very sure the Chinese can build these kinds of things with great precision and quality, since Ford will have to cover any defective ones under warranty, and Ford cannot afford to give away future quality for a cheaper price.
    15 Oct 2011, 07:28 PM Reply Like
  • Terry330
    , contributor
    Comments (866) | Send Message
     
    Ford workers must stand up to their American rights,and not bow to Conservatives and fascism.
    14 Oct 2011, 12:46 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    And what exactly are their American rights. The right to drive their jobs into the arms of workers in another country.
    14 Oct 2011, 01:46 PM Reply Like
  • rbergesch
    , contributor
    Comment (1) | Send Message
     
    Look around you, Terry330. How many current model Chrysler cars have you seen recently? I've seen several ads for a Chrysler 200, but only one in real life. And soon the Chrysler showrooms will be filled with Fiats. Have you bought a GM or Ford car recently? Or do you drive a Toyota, or Hyundai, or Kia, or Mercedes? Just asking... BTW, I have 2 Toyotas and a Mercedes in my family, plus a Lincoln I inherited recently. I'm not rich enough to run 4 cars, so I wonder what my vehicle picture will be in a few more months???

     

    Who is going to pay the Ford workers more than they are being offered? Unless you are signing a deal on a Ford this week, I suggest you root for a prudent Ford management to continue to contain their costs... BTW, I am long Ford stock; have been for 2 years, recently increased the position.
    14 Oct 2011, 08:03 PM Reply Like
  • 6343escortsr
    , contributor
    Comments (20) | Send Message
     
    Ford stock has made me a ton and will make me a ton more, Just watch!
    15 Oct 2011, 08:15 AM Reply Like
  • gains111
    , contributor
    Comments (2) | Send Message
     
    30 years investing experience.
    15 Oct 2011, 04:14 PM Reply Like
  • bamanomical
    , contributor
    Comments (27) | Send Message
     
    With Michigan in a total state of meltdown and Ford with a better smarter management team than its ever had, what are these union folks thinking? Please dont tell me there is a correlation between auto companies, bail out money and union control.
    15 Oct 2011, 09:24 AM Reply Like
  • micromail
    , contributor
    Comments (6) | Send Message
     
    We would welcome a Ford plant in North Carolina. I do not have any F stock at this time even though it is very attractive at the tne dollar range. I am long T which is constantly under attack by our own government.
    15 Oct 2011, 04:14 PM Reply Like
  • Tdot
    , contributor
    Comments (3572) | Send Message
     
    What a difference 24 hours makes. By Friday morning, the voting had swung to 50.8% in favor of the new contract, and by Friday evening it was 54%. By noon Saturday, 56% of votes were in favor, with just about half the membership voting and counted. There are still some very large blocks of votes to be counted in the next 72 hours, but if those are split roughly down the middle, the contract should ratify by around 52-53%.

     

    Ford's share prices do seem to have been inching upwards in the past week, apparently in anticipation of successful completion of the contract, or else in the "breaking" of the union's grip around Ford's throat if it fails and Ford takes it to arbitration. In Arbitration, the Union could lose all the promised bonuses and profit sharing, and factory investment commitments and promises of jobs in the US. And they may have to settle on matching Toyota level pay (which might mean giving back $2 or more an hour!) and minimal inflation-based pay raises (maybe 1-2%), and basically nothing else. They could also lose their overtime pay to more half-price entry level workers working the extra shifts. They do seem utterly unable to "do the math" on what they are getting here...
    15 Oct 2011, 08:04 PM Reply Like
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