Should Obama Fix Ford's UAW Problem?

Looks like another job for The Rock Obama.

First of all, Ford knew their UAW relationship was going to come to this. The Obama Admin forced the UAW to work with GM and Chrysler b/c the 2 companies had filed Ch11 and the UAW had to concede or be completely pushed out. Now that Ford has posted a $1b quarterly profit, their in a much worse position at the negotiation table with the UAW.

Ford felt it was in a better financial situation and refused govt bailout aid. They were warned early on that b/c GM and Chrys agreed to be restructured with heavy govt interaction, they'd be able to command lower operating costs and force suppliers and unions to approve pay concessions. Ford raised its chin and started to gloat about not having to file for bankruptcy.

In reality, Ford should have quickly followed its cross-town competitors into bankruptcy and took as little govt funds as possible, if only just to pay it back a year later to get from under govt pay limitations. With that bankruptcy, they could tell the UAW to take the pay cuts and layoffs and not worry about a strike or slowdown (they'd be able to hire more non-union labor).

....oh...and no, the Obama Admin should just sit back and take not action on this one. They offered to help earlier this year, and was refused by Ford. Since the company refused govt funds, the govt really doesn't have a say in what Ford does or what happens to it.

'UAW members believe that Ford is "financially stronger" than GM or Chrysler and therefore does not deserve any "give-backs."'

LOL perfect, exactly what a union would think. Not "hey lets make our company stronger", more like "hey the companies not bankrupt yet! we obviously are getting ripped off."

Gotta love it!

After everything that has happened with GM and Chrysler, you would think the UAW would want to make sure Ford as a firm was as competitive as possible. Goes to show why organized labor is no longer relevant in a global marketplace. You can't have a workforce that is opposed to the strategic success of the firm.

uaw members now own general motors so why would they put ford on the same playing field - they want people to buy GM products.. once they force ford to close their doors and reopen with uaw as owners (thanks to obama) they will happy to reduce their demands....

Unions have too much power. When the workforce has heavy influence on business decisions it’s a recipe for disaster. Unions have destroyed plenty of companies. Now it looks like they are finalizing the destruction of the U.S Auto industry.

As for Obama fixing Ford's UAW problem? The only way he could do that is to get rid of the UAW altogether. Reagan anyone?

But really… if we haven’t learned by now that Obama is nothing more than an Average Politian, and is incapable (doesn’t have the balls) to pass any type of legislation then we are a sorry bunch. I spit out the Obama Cool-Aid a long time ago. Obama isn’t Jackie Robinson or MLK. He’s far from it.

With the national unemployment rate at 9.8% and the Michigan rate at 14.8%, I don't think Ford would have a hard time replacing any UAW worker whose mindset is still in the 1950's. Too bad our current laws don't allow companies to dismiss union members who demand compensation completely unrelated to market demands.

Obama should immediately knock down these incompetent sluggards and parasites called the UAW.

Any worker in any company should be offered the same basic right and privileges. Workers in companies infected by the UAW permanently break this rule by overrunning their limits. To make it even more ridiculous, you get more not basing on merits and competences but by joining the UAW or not.

Workers unions always were the relic of socialism and communism. They always lacked any business insight and perspective thinking, only trying to exploit the employer on daily basis, as much as possible, without thinking about the future for a single second.

Ford is the only strong American car maker that also happens to undertake right steps. They have an excellent hybrid technology, import a very good, efficient, affordable and beautiful new Fiesta, came up with the new Taurus - tons of good vehicle for little money and have respected, solid position in Europe. Undermining them with union parasites would be the idiocy of century.


Sadly, Obama won't do anything. He's a socialist and as such, will never harm a purely socialist organization.

Why not? It's just money. Besides this generation has nothing to worry about. I say pay the UAW more today and tax the hell out of their grandchildren tomorrow.

Simply put, capitalism today, communism tomorrow.

What a selfish thing to do. Obama wont do anything, and I applaud ford for being in the stable profit situation they are in now. I used to hate ford (found on road dead, etc.) but now I actually like it.

For now.

But the UAW problem plays like a broken record. This may not be the case at the momnent, but give it a few years. Are you prepared to support another bailout? It's not like you have a say it in anyways.

If so, then great. Let's keep the mud-slinging and free money circulating. If not, then unions, specifically the UAW need to be done away with entirely.

Is it me, or has the quality of discourse on this site improved dramatically in the last year? These are a bunch of well-reasoned comments from mostly smart people. Awesome.

That's only because "Badgewhore" hasn't commented yet.

Well, Obama seems to want to get involved with everything else so why not get involved with this issue. Obama has stated in that past that he highly supports the UAW so he probably wouldn't defend Ford.

If I was a worker at the union I might be more inclined to taking cuts if I knew all of the execs were taking the same cuts.

That's a very common sentiment among workers, and on the surface it makes sense. However, from a big picture perspective, the salaries of a handful of executives don't influence overall costs nearly as much as the salaries of tens of thousands of union workers (as I'm sure you know).

It's important to note that in this particular instance, the UAW isn't even being asked to take a cut in pay. Instead, they're just being asked to accept some more flexible work rules and a wage freeze for new hires.

At the end of the day, this moves seems like proof that a union is only as smart as it's dumbest members.

truckman: I agree with you, I do not think that UAW are totaly wrong, but it could be very interesting to see what knind of "Sacrifice" is doing the Administration of the company.

Aren't the presidents holding $1 a year salaries?

Man this is one smart board of people. It is clearly the Unions fault that these car companies are having major problems regardless of what auto workers make in Germany, Japan or any other country for that matter. The bottom line is not to make a good living at a job it is to make the company stronger and more competitive. The UAW yokels need to get with it. They should agree to 50% pay cuts immediately then over the next three years get their salaries down below the Chinese so our country and our companies can be the strongest most profitable companies in the world. I know that is what all the smart people on this board are doing. Going to the bosses day in and day out saying cut my pay and benefits so we can make our company stronger... .I sure do everyday.

It is a free market. Ford is free to let them all go at the end of the contract. Put all it's factories, engineers, middle managers etc... in China and India or wherever they can get the cheapest labor that makes the company stronger.