George S. May Business Blog

UAW shoots down new contract with Ford

Although the Canadian Auto Workers union may have been able to reach a new agreement with Ford, their neighbors to the south weren’t as happy with the proposed agreement.

Up for approval was an agreement that mirrored that of the one offered to, and agreed upon by, the unionized autoworkers of Chrysler and GM during their bankruptcy proceedings. Highlights of the proposal had limitations placed on the unionized workers’ rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created.

Allegedly, union leaders pleaded with the voters that a deal like this was necessary to establish a common ground between the three automakers in Detroit; especially when it comes negotiations moving forward. Nonetheless, as voting drew to a close across the country this weekend, UAW members at three of Ford’s largest U.S. plants – the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant – all voted against the new contract, making its passage now virtually impossible.

This is just another example of how although the UAW attempts to protect its members, in the end its unwillingess to negotiate proves to be detrimental to all parties involved. I am a supporter of unions and protection of the everyday blue collar worker. But it is obvious that there is a huge error in the equation that is the Detroit’s auto industry and every part must be reassessed.

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