Will the UAW get Ford too?

[LTC8K6]

I wonder which way Ford will go here? It seems they are in a precarious position. Maybe more time needs to pass to see how sales and the economy go?

WSJ Letter to the Editor:

Bailout's Moral Hazard Bites Ford
Paul Ingrassia's "How Ford Is Making Its Comeback" (op-ed, Nov. 5) is encouraging in illustrating that industrial America can succeed with the proper leadership. The disheartening aspect is the failure of the United Auto Workers to give the same contract amendments to Ford that it gave to General Motors and Chrysler. This puts Ford at a competitive disadvantage versus its government- and union-owned competitors.

The UAW is behaving in the same shortsighted and greedy manner that contributed to the bankruptcy of GM and Chrysler. One could conclude that the UAW has learned nothing from the near-death experience of the American auto industry. But anyone reaching the conclusion that the UAW is working against its own self-interest as it works against Ford's interest is sadly mistaken.

We are witnessing the "moral hazard" of the Obama administration bailouts of GM and Chrysler play out before our very eyes. The lesson the UAW learned was that if its company is forced into bankruptcy the government will see to the following: the equity holders are wiped out, the secured creditors/bondholders are treated like unsecured creditors or worse, and the unions will gain ownership of the company along with the government while preserving the lion's share of their jobs, pensions and benefits at the expense of the taxpayers.

Is the union working against its own self-interest as it destroys the competitiveness of its employer? The answer is sadly, not anymore.

Christian D. Marques

Sparta, N.J.

http://online.wsj.com/public/page/letters.html Link to the letter, but it will expire.

 

[shiner]

 

[BlahBlahYouToo]

f*ck the UAW.

 

[Darwin333]

Is the Union really working against its own self interests? If they are part owners of GM and they can increase GM's market share by decreasing Ford's market share is that a good thing for the UAW or a bad thing?

And the letter makes a valid point about the "risk" the UAW is taking. If it blows up then they just wind up owning part of Ford too. Who in their right mind would offer any kind of concesions with that kind of position?

 

[umbrella39]

and this has what to do with UAW and Ford? Didn't you used to be banned? GTFO.

 

[umbrella39]

f*ck the UAW.

This.

 

[JeepinEd]

Originally Posted by BlahBlahYouToo View Post
f*ck the UAW.

This.

Totally Agree

 

[CPA]

That guy is right on and makes my want to vomit.

 

[Lemon law]

The thread title of will the UAW get Ford too is arrogant, false, misleading, and pre supposes its the UAW that killed GM and Chrysler. And therefore its the duty of UAW members to work for no compensation or pension just so GM stock holder can be happy. While we are at it, lets bring back slavery.

And the same time, we must realize that the compensation packages of all domestic auto producers, are basically the same in pay, pension, and health benefits. And it applies equally to outfits like Ford & GM, or Toyota and Honda.

The difference is in how long they have been operating in the USA. Its now a yes, Toyota, Honda and other foreign competition can price undercut traditional domestic makers like Ford, GM, and Chrysler by $2000 per vehicle because of reduced pension and health care costs. But when those Toyota and Honda workers start to retire in 10 years or so, the costs of Toyota and Honda vehicles will rise dramatically as those legacy costs kick in, and then the cost inequity will vanish.

But we must realize that health care reform can address some of those UAW health issues also.

 

[lupi]

Hey look, another lemon solution that involves UHC, who would have thought.

 

[shiner]

and this has what to do with UAW and Ford? Didn't you used to be banned? GTFO.

You need to relax....

 

[spidey07]

The letter is dead on. I don't think the union will "get" ford but it will be a cost burden that other manufacturers don't have which puts them at a severe competitive disadvantage. Honda/Toyota are even talking about REDUCING wages for team members to take advantage of the situation and put more pressure on ford to gain market share.

 

[waggy]

and this is a suprise why?

 

[JSt0rm]

Hey look, another lemon solution that involves UHC, who would have thought.

Well actually UHC would remove a huge reason for workers to form unions. My editors union membership would plummet if UHC was a reality. Just sayin'

 

[LTC8K6]

Unions have "cadillac" health care plans which could/would be taxed under UHC. Also, such plans may well disappear under UHC in favor of cheaper alternatives.

The UAW now owns large chunks of GM(17.5&#37 and Chrysler(55%) and that is what my title refers to, of course.

It seems hard for me to believe that the UAW is now the majority holder of Chrysler.

 

[waggy]

Unions have "cadillac" health care plans which could/would be taxed under UHC. Also, such plans may well disappear under UHC in favor of cheaper alternatives.

The UAW now owns large chunks of GM(17.5%) and Chrysler(55%) and that is what my title refers to, of course.

It seems hard for me to believe that the UAW is now the majority holder of Chrysler.

I thought i read that they were going to remove the ability to tax "cadallac" health care plans.


and yes im suprised so many are shocked that something like this could be happening.

 

[Skitzer]

Originally Posted by BlahBlahYouToo View Post
f*ck the UAW.



Totally Agree

+3 They'd love to see Ford dragged into bankruptcy just like they contributed to the collapse of GM and Chrysler. It's all about greed and entitlement. They would rather be out of work collecting unemployment than keeping their jobs by giving in to some minor concessions.

 

[JSt0rm]

+3 They'd love to see Ford dragged into bankruptcy just like they contributed to the collapse of GM and Chrysler. It's all about greed and entitlement. They would rather be out of work collecting unemployment than keeping their jobs by giving in to some minor concessions.

wow you can read collective minds and reduce something to such simple terms Why I bet you could also fix world hunger and create world peace. ohh also could you channel Micheal Jackson for me. I want to ask him something. :awe:

 

[LTC8K6]

I thought i read that they were going to remove the ability to tax "cadallac" health care plans.


and yes im suprised so many are shocked that something like this could be happening.

http://www.nasdaq.com/aspx/stock-ma...poses-to-further-trim-cadillachealth-plan-tax

Harry Reid has plans to tax "cadillac" insurance plans.

 

[PricklyPete]

This makes me want to buy a Ford Vehicle made in Mexico/non-UAW plants and boycott ones made by the UAW.

 

[Lemon law]

Its not surprising that this one sided article comes from the Wall Street Journal. After all, capitalist have not exactly proved to be the smartest knives in the drawer or have even ever been accused of acting in their best long term interests.

But yes, we can go back to the 1920's when the benefits of mass production and increased productivity really flowered. Meaning industry could cheaply deliver the benefits of production to the world, and what did capitalist do as they pigged all the benefits onto themselves? Short answer they killed off the customer and no one could afford to buy their products, even at reduced prices. And to that they had no answer as a falling tide dropped all boats.

As the middle class again see all gains go to only the wealthy, we see more of the same, as the ever greedy capitalist almost manged to collapse the whole international banking system. Gee ain't the WSJ omnipotent?

Yep lets attack villainous labor while forgetting they are the customer and the base of the food chain. And without a base of the food chain and a balance between capital and labor, we are asking for trouble. And have already have it. And if we do not restore a balance, its going to get far worse for everyone.

 

[Skitzer]

wow you can read collective minds and reduce something to such simple terms Why I bet you could also fix world hunger and create world peace. ohh also could you channel Micheal Jackson for me. I want to ask him something. :awe:

Very funny reply. I'm just so crushed by it.
Why don't you post your opinion as I did instead of trying to insult.
Oh, by the way .......... what is it that you would like to discuss with Michael?

 

[woodie1]

Once again the UAW provides good reasons to not buy anything built by them.

 

[CADsortaGUY]

Aren't there a lot of out of work people who used to work at auto plants? Sounds to me like Ford should tell the UAW to get bent and hire new workers. Unemployed people probably wouldn't mind crossing the whiner lines outside the plants if it means a paycheck.

 

[woodie1]

Aren't there a lot of out of work people who used to work at auto plants? Sounds to me like Ford should tell the UAW to get bent and hire new workers. Unemployed people probably wouldn't mind crossing the whiner lines outside the plants if it means a paycheck.

I was thinking along the same lines. Build a large stockpile of vehicles. Tell the UAW take it or leave it. Hire replacement workers. Sell off the large inventory while training the new hires.