October 15, 2007

Ford Thinks It's UAW Employees Are Stupid

I was perusing through the newspapers automotive section and came across an article that stated this about the negotiations at Ford

Ford Motor Co. is proposing annual bonuses for union workers based on the company's performance as part of its effort to win more favorable contract terms from the United Auto Workers, according to a person familiar with the situation.

The bonuses would be similar to those CEO Alan Mulally authorized in March to reward workers for their efforts to turn around the company's struggling U.S. automobile operations

Maybe the people from Ford who are negotiating for the company haven't read the previous contract or maybe they are just stupid.

The UAW already has an agreement in place for profit sharing bonuses based on North American profits.

Sounds like they want to replace what is already in existance with the same thing but make it sound like something brand new.

They also mention they want to make less of a contribution to the retiree health deal.

Ford also wants to make sure the retiree health care deal that was the backbone of the GM and Chrysler agreements is structured to give it as much relief as possible as fast as possible.

That could involve a lower contribution to a company-financed, union-run trust, known as a voluntary employees' beneficiary association, or VEBA, that would pay for retiree health care. Ford could seek different funding terms for the VEBA or push for a different mix of cash and stock.

At some point down the road some retiree's are going to get screwed out of health care, and it's probably going to be at the same time that Mr Weenie retires.

You can't not fully fund retiree health and expect every retiree to get health care, at some point the money is going to run out. Just look at social security.

It's funny, all one hears at work is that the company isn't going to negotiate in the press but that is all they have been doing.

Posted by Quality Weenie at October 15, 2007 09:53 AM | TrackBack