The UAW bites back: Ford shouldn't expect charity from its workers

[Omaha Steve]

http://community.post-gazette.com/blogs/finepoint/archive/2009/11/09/the-uaw-bites-back-ford-shouldn-t-expect-charity-from-its-workers.aspx

Monday November 9, 2009

There was a fair amount of shock at Ford Motor Co. last week when the United Auto Workers turned down a package of contract concessions. Ford executives shouldn't have been surprised, however. They brought this on themselves.

For nearly a year, Ford has maintained that it was different from General Motors and Chrysler.

For one thing, Ford, alone among the once-big three, has neither sought government loans, nor declared bankruptcy. There were a number of reasons for this. First, Ford had borrowed heavily in the private sector back when big corporations could still do so. Ford had also recruited Alan Mulally from Boeing, who took over as CEO and promptly began turning the stagnant automaker around. Finally, Ford has a better product line right now, and the company is not above bragging about that.

But the Ford brass should have realized they couldn't have it both ways. Their workers reasoned that if they were in much better shape than the bankrupt automakers, why should the guys on the line have to grant the same concessions?

Ironically, Ford may need give-backs more than GM or Chrysler. Those automakers shed most of their debt in bankruptcy court but Ford has $27 billion of debt, by most calculations. The union workers' decision to turn down contract concessions may cost the company money in the short run and the union jobs over time.

But Ford has only itself to blame. You can't brag about how well you are doing and then expect your workers to give you charity.