Ford Goes Trough Rough Times With UAW Negotiations

Ford Motor Company is going through rough times given the fact that the company finds itself is in an uncomfortable position when it comes to negotiating with the UAW. Ford is the only American automaker that faces a possible worker strike and can’t simply take its union to a third-party arbitration. It's also worth mentioning the fact that Ford doesn’t have a ban on strikes and it can’t force binding arbitration. This way, UAW advantages its rivals General Motors and Chrysler.

The manufacturer hasn’t had a worker walk-out in 35 years, and Ford has been making efforts to lower the cost gap it has compared to GM, Chrysler and foreign automakers. Ford has an amazing paying rate per worker at an average of $58 per hour, while GM pays $56 and most foreign automakers are paying below $50. After the manufacturer started making profit after passing bankruptcy, the United Automobile Workers of America declared Ford as its main target.

The UAW wants profit-sharing, board representation and it hasn’t been happy with CEO Alan Mulally’s most recent $56.6 million stock compensation. Ford is extremely vulnerable at this moment giving the fact that workers might accept a deal at Chrysler and GM.

In the past, the UAW has generally seen a level playing field with car manufacturers, but now thing are not so balanced, meaning Ford's situation is an uncertain one. On the other hand, at GM and Chrysler there is a bit more calm, given the fact that they were able to pass by situations like this.
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