"Our Union?"

[Confused2]

I cannot help but ask all of the Gary W. fans and the fans of the no vote, what does the words "Our Union" mean to you. Does it mean your plant? Does it mean your zone? does it mean your Region? What do we tell our brothers and sisters who have stood beside us in the past and have gotten screwed by our government and had to take the agreement that was handed to them or see their jobs just go away? I know we tell them we stood up to the company because we knew they couldn't. What they should have done was voted against the agreements and let the companies just file chapter 7 and just sell off their jobs. They would have showed strength and we would have been there to help them right?

Our Union was not built on the backs of people who care only about themselves and whether or not they are getting what they want and screw everyone else. In fact we make decisions that are for the betterment of all labor, yes even those people who work in non-union shops. We try our best to hold onto the what power we can during tough times so we can be strong during the good times. We do this because we dont just make a difference in Michigan, we make a difference in Ohio, Indiana, Kentucky, Tennessee, North Carolina, Texas, Arizona, California, NewYork, just to name a few. We cant and shouldn't just vote for us but for those other facilities and other brothers and sisters whose lives our vote will effect.

I know things in Michigan are horrible and we all hurt for our brothers and sisters who are hurting there, but it has never been more important to pull together and stand united with all of our brothers and sisters. I have heard pattern bargaining since I was a kid from my father and really didn't understand it until now. He always said it was important and it held our Union together. Made no sense to me why he would give up things because others at other companies did and get things because others did. Now I get it. We fight together. We win together. We lose together. So that's what SOLIDARITY is, Cool. I am proud to call my dad a Union member and I hope someday my son will be proud of me too. I will stand with others who need lifted up and count on them to stand with me when I need lifted up. I hope the vote turns out the way you want it to, but most of all I hope we have true solidarity in our hearts and our votes.

[skeptic]

I cannot help but ask all of the Gary W. fans and the fans of the no vote, what does the words "Our Union" mean to you. Does it mean your plant? Does it mean your zone? does it mean your Region? What do we tell our brothers and sisters who have stood beside us in the past and have gotten screwed by our government and had to take the agreement that was handed to them or see their jobs just go away? I know we tell them we stood up to the company because we knew they couldn't. What they should have done was voted against the agreements and let the companies just file chapter 7 and just sell off their jobs. They would have showed strength and we would have been there to help them right?

Our Union was not built on the backs of people who care only about themselves and whether or not they are getting what they want and screw everyone else. In fact we make decisions that are for the betterment of all labor, yes even those people who work in non-union shops. We try our best to hold onto the what power we can during tough times so we can be strong during the good times. We do this because we dont just make a difference in Michigan, we make a difference in Ohio, Indiana, Kentucky, Tennessee, North Carolina, Texas, Arizona, California, NewYork, just to name a few. We cant and shouldn't just vote for us but for those other facilities and other brothers and sisters whose lives our vote will effect.

I know things in Michigan are horrible and we all hurt for our brothers and sisters who are hurting there, but it has never been more important to pull together and stand united with all of our brothers and sisters. I have heard pattern bargaining since I was a kid from my father and really didn't understand it until now. He always said it was important and it held our Union together. Made no sense to me why he would give up things because others at other companies did and get things because others did. Now I get it. We fight together. We win together. We lose together. So that's what SOLIDARITY is, Cool. I am proud to call my dad a Union member and I hope someday my son will be proud of me too. I will stand with others who need lifted up and count on them to stand with me when I need lifted up. I hope the vote turns out the way you want it to, but most of all I hope we have true solidarity in our hearts and our votes.

Vote no for the betterment of all labor.Don't let the union screw you.

[TBodette68]

I cannot help but ask all of the Gary W. fans and the fans of the no vote, what does the words "Our Union" mean to you. Does it mean your plant? Does it mean your zone? does it mean your Region? What do we tell our brothers and sisters who have stood beside us in the past and have gotten screwed by our government and had to take the agreement that was handed to them or see their jobs just go away? I know we tell them we stood up to the company because we knew they couldn't. What they should have done was voted against the agreements and let the companies just file chapter 7 and just sell off their jobs. They would have showed strength and we would have been there to help them right?

Our Union was not built on the backs of people who care only about themselves and whether or not they are getting what they want and screw everyone else. In fact we make decisions that are for the betterment of all labor, yes even those people who work in non-union shops. We try our best to hold onto the what power we can during tough times so we can be strong during the good times. We do this because we dont just make a difference in Michigan, we make a difference in Ohio, Indiana, Kentucky, Tennessee, North Carolina, Texas, Arizona, California, NewYork, just to name a few. We cant and shouldn't just vote for us but for those other facilities and other brothers and sisters whose lives our vote will effect.

I know things in Michigan are horrible and we all hurt for our brothers and sisters who are hurting there, but it has never been more important to pull together and stand united with all of our brothers and sisters. I have heard pattern bargaining since I was a kid from my father and really didn't understand it until now. He always said it was important and it held our Union together. Made no sense to me why he would give up things because others at other companies did and get things because others did. Now I get it. We fight together. We win together. We lose together. So that's what SOLIDARITY is, Cool. I am proud to call my dad a Union member and I hope someday my son will be proud of me too. I will stand with others who need lifted up and count on them to stand with me when I need lifted up. I hope the vote turns out the way you want it to, but most of all I hope we have true solidarity in our hearts and our votes.

 

 

This is exactly why I am voting NO..

[Country Gril]

Great post United that is what I am if my leadership comes to me and says we have a problem and presents a plan that will save many jobs and also generates work to the UNITED STATES OF AMERICA I for one will Vote YES because i have tanken the time to look at all sides of the coin and clearly can tell that this will save alot of fellow UAW brother's and Sister's their means to provide for their family's with this said I vote YES (TO MY BROTHERS&SISTERS YOU WILL NOT STAND ALONE I WILL STAND THEIR WITH YOU )

[TBodette68]

Great post United that is what I am if my leadership comes to me and says we have a problem and presents a plan that will save many jobs and also generates work to the UNITED STATES OF AMERICA I for one will Vote YES because i have tanken the time to look at all sides of the coin and clearly can tell that this will save alot of fellow UAW brother's and Sister's their means to provide for their family's with this said I vote YES (TO MY BROTHERS&SISTERS YOU WILL NOT STAND ALONE I WILL STAND THEIR WITH YOU )

 

 

you fell for the more empty promises routine? shame on you..it is now time for us to say no ..

[FANTASTICFORD]

Great post United that is what I am if my leadership comes to me and says we have a problem and presents a plan that will save many jobs and also generates work to the UNITED STATES OF AMERICA I for one will Vote YES because i have tanken the time to look at all sides of the coin and clearly can tell that this will save alot of fellow UAW brother's and Sister's their means to provide for their family's with this said I vote YES (TO MY BROTHERS&SISTERS YOU WILL NOT STAND ALONE I WILL STAND THEIR WITH YOU )

 

I don't care how you vote but you are wrong, concessions DO NOT save jobs. Just ask all the ex-uaw members that worked at closed plants. We been giving up concessions for many, many years now and still losing more jobs, go figure!! How many employees did Ford have when you started? How many do they have now? I clearly understand they had to cut back but lots of our American vehicles and parts are built in other countries.

[rogerrabbit]

I cannot help but ask all of the Gary W. fans and the fans of the no vote, what does the words "Our Union" mean to you. Does it mean your plant? Does it mean your zone? does it mean your Region? What do we tell our brothers and sisters who have stood beside us in the past and have gotten screwed by our government and had to take the agreement that was handed to them or see their jobs just go away? I know we tell them we stood up to the company because we knew they couldn't. What they should have done was voted against the agreements and let the companies just file chapter 7 and just sell off their jobs. They would have showed strength and we would have been there to help them right?

Our Union was not built on the backs of people who care only about themselves and whether or not they are getting what they want and screw everyone else. In fact we make decisions that are for the betterment of all labor, yes even those people who work in non-union shops. We try our best to hold onto the what power we can during tough times so we can be strong during the good times. We do this because we dont just make a difference in Michigan, we make a difference in Ohio, Indiana, Kentucky, Tennessee, North Carolina, Texas, Arizona, California, NewYork, just to name a few. We cant and shouldn't just vote for us but for those other facilities and other brothers and sisters whose lives our vote will effect.

I know things in Michigan are horrible and we all hurt for our brothers and sisters who are hurting there, but it has never been more important to pull together and stand united with all of our brothers and sisters. I have heard pattern bargaining since I was a kid from my father and really didn't understand it until now. He always said it was important and it held our Union together. Made no sense to me why he would give up things because others at other companies did and get things because others did. Now I get it. We fight together. We win together. We lose together. So that's what SOLIDARITY is, Cool. I am proud to call my dad a Union member and I hope someday my son will be proud of me too. I will stand with others who need lifted up and count on them to stand with me when I need lifted up. I hope the vote turns out the way you want it to, but most of all I hope we have true solidarity in our hearts and our votes.

vOTE NO HERS WHY..........PATTERN BARTAINING ALWAYS STARTED WITH THE COMPANY THAT IS DOING GOOD NOT THE ONES THAT OUR DOING BAD.ALSO IN THE 80'S CRYS....BORROW FROM THE GOVERMENT WE DID NOT PATTERN BARTAIN DOWN TO THEIR LEVEL AND IT WORK OUT FOR THEM FOR 29 YEARS....AND THEY PAID THE GOVERMENT BACK SO LET GM AND CRYSLER DO IT AGAIN AND LEAVE FORD BE...........ALSO WE GAVE ALOT ALREADY....

 

most people don’t know that our UAW International Reps. live in a world apart from us. A world where they are insulated from ever worrying about money or losing benefits. They have a far superior contract covering themselves than the workers they represent.

They are covered under the standard UAW contract as we all are, plus they have a second retirement plan, over and above the first one, that is funded by our dues. Their health care plan is superior to the workers they represent. Some of the other perks are they get COLA on their second pensions. They qualify for their second pension after as little as five years on staff. There is never a concession contract for these International Reps. It only gets improved upon. Provisions like car allowance improvements, towing, oil changes, expense accounts, raises on pensions, and benefits each contract are taken for granted by International Reps.

I think the pain and suffering is being experienced only by our active workers and retirees; definitely not by our International Reps. Our International Union Reps definitely need to quit asking our members to give concessions while they continue to add to their nest egg.

[rogerrabbit]

Remember who sign that letter at the cap plant that was fax to me ,If i was u i will vote all of them out in the next elections .RR got his way hes going to IUAW JUST LIKE YOUR LAST CHAIRMAN THAT SCREW U .I HOPE TO GOD YOU VOTE IT DOWN .CALL LABOR BOARD TO MAKE SURE IT A FAIR ELECTION .I AM TIRED OF THE 51 TO 49 %NUMBERS .SOUNDS FISHING TO ME .REAL NUMBERS YES OR NO POSTED.IF NOBODY HAS THE BALLS TO CALLED THE LABOR BOARD ,TEXT ME THRU BLUE OVAL AND I WILL CALL.

 

most people don’t know that our UAW International Reps. live in a world apart from us. A world where they are insulated from ever worrying about money or losing benefits. They have a far superior contract covering themselves than the workers they represent.

They are covered under the standard UAW contract as we all are, plus they have a second retirement plan, over and above the first one, that is funded by our dues. Their health care plan is superior to the workers they represent. Some of the other perks are they get COLA on their second pensions. They qualify for their second pension after as little as five years on staff. There is never a concession contract for these International Reps. It only gets improved upon. Provisions like car allowance improvements, towing, oil changes, expense accounts, raises on pensions, and benefits each contract are taken for granted by International Reps.

I think the pain and suffering is being experienced only by our active workers and retirees; definitely not by our International Reps. Our International Union Reps definitely need to quit asking our members to give concessions while they continue to add to their nest egg.

[rogerrabbit]

Great post United that is what I am if my leadership comes to me and says we have a problem and presents a plan that will save many jobs and also generates work to the UNITED STATES OF AMERICA I for one will Vote YES because i have tanken the time to look at all sides of the coin and clearly can tell that this will save alot of fellow UAW brother's and Sister's their means to provide for their family's with this said I vote YES (TO MY BROTHERS&SISTERS YOU WILL NOT STAND ALONE I WILL STAND THEIR WITH YOU )WHILE most people don’t know that our UAW International Reps. live in a world apart from us. A world where they are insulated from ever worrying about money or losing benefits. They have a far superior contract covering themselves than the workers they represent.

They are covered under the standard UAW contract as we all are, plus they have a second retirement plan, over and above the first one, that is funded by our dues. Their health care plan is superior to the workers they represent. Some of the other perks are they get COLA on their second pensions. They qualify for their second pension after as little as five years on staff. There is never a concession contract for these International Reps. It only gets improved upon. Provisions like car allowance improvements, towing, oil changes, expense accounts, raises on pensions, and benefits each contract are taken for granted by International Reps.

I think the pain and suffering is being experienced only by our active workers and retirees; definitely not by our International Reps. Our International Union Reps definitely need to quit asking our members to give concessions while they continue to add to their nest egg.

MUST BE IUAW REP TRYING TO SAVE ITS SECOND PENSION FROM BEING CUT.

 

 

Something to think about before you vote…

Total Compensation Packages

Alan Mulally, CEO- $21,670,674.00

Don LecLAIR, CFO- $11,703,127.00

Mark Fields, President –The Americas $8,389,898.00

Lewis Booth, V.P. Ford Europe $10,264,463.00

Mike Bannister, CEO, FMCC $8,677,747.00

Now to put this into perspective from the people who want more concessions….

Average UAW worker Income, Alan Mulally CEO,

Per Hr $28.38 Per Hr $10,418.59

Per Wk $1135.20 Per Wk $416,743.73

Yearly $59,030.40 Yearly $21,670,674.00

The 2007 CBA, which was already a concessionary agreement has now been opened twice to give back more, now our UAW leadership wants to give the company more concessions through the 2011 agreement until 2015.

Here is an idea of what we have already given back…

1. GEN, 2.ETAP, 3.Overtime premiums after 8 hours, 4.Holidays, 5.Christmas Bonus, 6.Performance Bonus, 7. Two tier wages, 8.SUB, 9.COLA, 10.Insurance Co Pay increases 11. one minute reduced from each hour break time. 12. Outsourcing of janitorial services. Also the Reduction of thousands of full-time employees due to retirement packages and early separation packages.

Remember what we have given up already.... just this year alone...

COLA: (assuming it stayed at 99 cents the entire contract): $6,240 through 2011

Performance Bonuses: $7,000 (on average) through 2011

Holidays: approximately $600 for two holidays

Christmas Bonuses: $1,200 for 2009/2010

 

TOTALS PER EMPLOYEE: $15,040 through the EOC in 2011, just in lost compensation

Assuming 36,000 Active Hourly Employees: $541,440,000 in compensation concessions.

Do you really feel like giving up the most important tool we have (striking) for a measly $1,000 bonus (that won't be paid for 5 months anyways) which will end up only being about $670 after taxes?

You have eliminated thousands of workers off the rolls. The company should be saving a ton of money by this alone. Overtime eliminations in most plants. 10 hour day modifications by not paying workers overtime until 40 hours have been reached.

 

In closing, do you really believe there is no hidden agenda here? With these recent concessions of giving up our strike clause for wage increase and unlimited 2nd tier hiring, ask yourself this… if the UAW and Ford have such a great working relationship then why is this a concern? After all, look what we have already given them. OUR OPINION…they are not worried about taking our wages down, they want to keep our

wages frozen where they are right now until 2015, after we have not received a wage increase since 2003, and guess what...WE CAN NOT STRIKE!!! While Ford will be reporting another quarterly profit gain!!!

[rogerrabbit]

Great post United that is what I am if my leadership comes to me and says we have a problem and presents a plan that will save many jobs and also generates work to the UNITED STATES OF AMERICA I for one will Vote YES because i have tanken the time to look at all sides of the coin and clearly can tell that this will save alot of fellow UAW brother's and Sister's their means to provide for their family's with this said I vote YES (TO MY BROTHERS&SISTERS YOU WILL NOT STAND ALONE I WILL STAND THEIR WITH YOU )

FUCKING U LIKE THE LAST CONCESSION .

 

Here is an idea of what we have already given back…

1. GEN, 2.ETAP, 3.Overtime premiums after 8 hours, 4.Holidays, 5.Christmas Bonus, 6.Performance Bonus, 7. Two tier wages, 8.SUB, 9.COLA, 10.Insurance Co Pay increases 11. one minute reduced from each hour break time. 12. Outsourcing of janitorial services. Also the Reduction of thousands of full-time employees due to retirement packages and early separation packages.

Remember what we have given up already.... just this year alone...

COLA: (assuming it stayed at 99 cents the entire contract): $6,240 through 2011

Performance Bonuses: $7,000 (on average) through 2011

Holidays: approximately $600 for two holidays

Christmas Bonuses: $1,200 for 2009/2010

 

TOTALS PER EMPLOYEE: $15,040 through the EOC in 2011, just in lost compensation

Assuming 36,000 Active Hourly Employees: $541,440,000 in compensation concessions.

Do you really feel like giving up the most important tool we have (striking) for a measly $1,000 bonus (that won't be paid for 5 months anyways) which will end up only being about $670 after taxes?

You have eliminated thousands of workers off the rolls. The company should be saving a ton of money by this alone. Overtime eliminations in most plants. 10 hour day modifications by not paying workers overtime until 40 hours have been reached.

 

In closing, do you really believe there is no hidden agenda here? With these recent concessions of giving up our strike clause for wage increase and unlimited 2nd tier hiring, ask yourself this… if the UAW and Ford have such a great working relationship then why is this a concern? After all, look what we have already given them. OUR OPINION…they are not worried about taking our wages down, they want to keep our

wages frozen where they are right now until 2015, after we have not received a wage increase since 2003, and guess what...WE CAN NOT STRIKE!!! While Ford will be reporting another quarterly profit gain!!!

[CandyCane]

There will be NO UNION without workers!!! FORD is giving us new work and we are turning it down,don't wanna hear no crying when your plant starts laying off.

[whereswaldo]

There will be NO UNION without workers!!! FORD is giving us new work and we are turning it down,don't wanna hear no crying when your plant starts laying off.

No we will just hear you crying more than you do now. What is it you are so afraid of ? Life ? Not a healthy way to live.

[MichiganTruck_Mafia]

There will be NO UNION without workers!!! FORD is giving us new work and we are turning it down,don't wanna hear no crying when your plant starts laying off.

 

What new work? Where are written contractual guarantees regarding new work if these concessions pass?

 

Oh yeah. Their aren't any.

 

VOTE NO

[uaw400]

I just can't vote YES !!!! I for one will not tell anyone how to vote but I'm just sick and tired of all the game playing going on between the UAW and Ford ! I was promised if I voted YES on the last contract consession that I wouldnt be laid off for a long time and now look at me I'm into TAP ! So no matter what anyone tries to sell me , I will not not buy anymore of there shit ! Go to the freep website and read what Bill Ford said today ....While Ford still has challenges -- such as managing $35 billion in debt and generating cash -- analysts expect positive surprises from Ford next week.

 

 

 

Executive Chairman Bill Ford acknowledged the challenges in getting the UAW to approve a new deal right now. Said Ford: "There is no question the timing is bad."

 

 

Need I saymore !!!!!

[Country Gril]

As Ford Motor Co. prepares to report financial results next Monday that several analysts predict will be positive or edging closer to break-even, Ford's growing success is complicating efforts to extract more cost savings from the UAW.

 

 

 

 

 

Ford's 41,000 UAW workers are voting on tentative contract changes through the end of this week -- or before Ford reveals its third-quarter performance. Although at least two locals have voted in favor of the deal, there is strong dissent.

 

 

 

Autoworkers told the Free Press that they don't believe Ford really needs to modify the existing labor contract.

 

 

 

"When it was a real crisis, we approved it," Mohammed Mondale, a worker at Ford's Dearborn Truck Plant, said Sunday, referring to cost-saving contract changes the UAW approved in March. "We're proud to work for Ford, but ... Ford's future is looking a lot better."

 

 

 

Indeed, Ford has managed to gain momentum during this historic recession. It has distinguished itself as the American automaker that proudly passed on taxpayer assistance. Through the first half of the year, Ford even eked out a profit of $834 million, although much of that was because of special onetime charges.

 

 

 

While Ford still has challenges -- such as managing $35 billion in debt and generating cash -- analysts expect positive surprises from Ford next week.

 

 

 

Executive Chairman Bill Ford acknowledged the challenges in getting the UAW to approve a new deal right now. Said Ford: "There is no question the timing is bad."

 

 

Estimates up for Ford's 3rd quarter

 

During the past two weeks, at least three Wall Street analysts have raised their estimates for Ford Motor Co.'s third-quarter financial results, with one, JP Morgan's Himanshu Patel, estimating that Ford would report a profit of 16 cents per share for the July-September period when it reports results next Monday.

 

 

Patel's estimate, released last Monday, translates into a profit of $515 million, excluding onetime charges, and his forecast helped boost Ford's share price to nearly $8 a share before it closed Friday at $7.63.

 

 

(2 of 3)

 

On Friday, the consensus estimate of 13 analysts tracked by Thomson One analytics was for Ford to report a 14-cents-per-share loss -- a better estimate than the group forecast just a week ago.

 

 

Despite some serious challenges, several Wall Street analysts told the Free Press that they see evidence Ford's more than 3-year-old turnaround effort is on track, and even may be ahead of schedule.

 

 

"I think we are beginning to kind of see the fruits of the longer-term efforts," Barclays Capital analyst Brian Johnson told the Free Press. "We expect profitability in 2010."

 

 

The message that Ford is doing better also has reached workers, and it's complicating efforts to convince Ford's 41,000 UAW-represented workers to vote in favor of a modified labor contract.

 

 

Members of at least two UAW locals have voted to ratify the agreement, but in each case, the margin was close. Voting is to continue through the end of this week.

 

 

Ford executives have told UAW workers that they need the changes in order to remain competitive with General Motors Co. and Chrysler Group LLC, which obtained better labor deals during their troubles earlier this year.

 

 

For some, that's a tough sell.

 

 

"If you want to be competitive with GM and Chrysler, go through bankruptcy, and then we'll understand," Tammy Johnson of Redford Township said Sunday at UAW Local 600, which was holding an information meeting for UAW members.

 

 

Gaining ground

 

Ford already reported an $834-million profit for the first half of the year. Much of that profit was because of onetime gains from accounting charges related to a debt restructuring, but it also reflected real business improvements.

 

 

This year, Ford has gained market share both in the United States and Europe, even as it cut incentive spending.

 

 

Ford spent an average of $2,792 per vehicle on incentives in the United States during the first nine months of this year, or 27.7% less than last year, according to Autodata Corp., and it still gained a full point of market share.

 

 

(3 of 3)

 

Johnson estimates that the combination of reduced incentives and higher average purchase prices could help Ford realize a $300-million net pricing improvement in North America.

 

 

Eric Selle, a credit analyst with J.P. Morgan Securities, said recent plant closures, employee reductions and cost cuts have the company positioned to perform better as industry sales rebound.

 

 

 

 

Debt disadvantage?

 

Still, Ford's looming debt remains a major concern.

 

 

Joe Hinrichs, Ford's group vice president of manufacturing and labor affairs, told UAW workers in September that GM was able to cut its debt from about $60 billion before bankruptcy to about $17 billion.

 

 

Ford, the only domestic automaker that didn't ask for emergency federal loans this year, faces $35 billion in debt and other financial obligations that it must pay by 2013, Hinrichs said.

 

 

UAW President Ron Gettelfinger cited Ford's looming debt as one of the main reasons to approve additional changes to the union's labor contract with Ford.

 

 

"They have twice as much debt ...as what General Motors does," Gettelfinger said earlier this month.

 

 

Cash burn a 'huge deal'

 

Another challenge for Ford is that, even with deep cost cuts, it continues to burn through more cash than it is taking in. In 2008, the company burned through $21.3 billion and started the year with just $24 billion in cash and credit.

 

 

"It's a huge deal," Selle said. "If there is one number to know about when it comes to Ford, it's the cash burn."

 

 

In January, Ford Chief Executive Alan Mulally vowed to cut the company's cash burn rate and he has delivered: Ford's cash consumption for the first half of the year was $4.7 billion.

 

 

It's about the long term

 

To achieve a true turnaround, however, Ford must show that it can generate cash. Selle estimates Ford consumed an excess of $1.9 billion during the third quarter.

 

 

On Sept. 30, when Mulally briefed analysts, he said Ford's lineup of new products and cost savings from its global plan eventually will lead Ford to sustained profits.

 

 

"This is about creating a strong business for the long term," Mulally said.

 

 

During a conference about electric vehicles last week, Ford Executive Chairman Bill Ford talked about the company's problems as if they were already in the past.

 

 

"During our dark days in 2006 through last year, one of the things I feel best about is we didn't slash and burn our research and development budget," Ford said. "It was something that I felt very strongly about."

 

 

 

Contact BRENT SNAVELY: 313-222-6512 or bsnavely@freepress.com

 

 

 

 

 

 

 

 

 

 

 

 

.

Edited October 26, 2009 by Country Gril

[Die Wahrheit]

As Ford Motor Co. prepares to report financial results next Monday that several analysts predict will be positive or edging closer to break-even, Ford's growing success is complicating efforts to extract more cost savings from the UAW.

 

 

 

 

 

Ford's 41,000 UAW workers are voting on tentative contract changes through the end of this week -- or before Ford reveals its third-quarter performance. Although at least two locals have voted in favor of the deal, there is strong dissent.

 

 

 

Autoworkers told the Free Press that they don't believe Ford really needs to modify the existing labor contract.

 

 

 

"When it was a real crisis, we approved it," Mohammed Mondale, a worker at Ford's Dearborn Truck Plant, said Sunday, referring to cost-saving contract changes the UAW approved in March. "We're proud to work for Ford, but ... Ford's future is looking a lot better."

 

 

 

Indeed, Ford has managed to gain momentum during this historic recession. It has distinguished itself as the American automaker that proudly passed on taxpayer assistance. Through the first half of the year, Ford even eked out a profit of $834 million, although much of that was because of special onetime charges.

 

 

 

While Ford still has challenges -- such as managing $35 billion in debt and generating cash -- analysts expect positive surprises from Ford next week.

 

 

 

Executive Chairman Bill Ford acknowledged the challenges in getting the UAW to approve a new deal right now. Said Ford: "There is no question the timing is bad."

 

 

Estimates up for Ford's 3rd quarter

 

During the past two weeks, at least three Wall Street analysts have raised their estimates for Ford Motor Co.'s third-quarter financial results, with one, JP Morgan's Himanshu Patel, estimating that Ford would report a profit of 16 cents per share for the July-September period when it reports results next Monday.

 

 

Patel's estimate, released last Monday, translates into a profit of $515 million, excluding onetime charges, and his forecast helped boost Ford's share price to nearly $8 a share before it closed Friday at $7.63.

 

 

(2 of 3)

 

On Friday, the consensus estimate of 13 analysts tracked by Thomson One analytics was for Ford to report a 14-cents-per-share loss -- a better estimate than the group forecast just a week ago.

 

 

Despite some serious challenges, several Wall Street analysts told the Free Press that they see evidence Ford's more than 3-year-old turnaround effort is on track, and even may be ahead of schedule.

 

 

"I think we are beginning to kind of see the fruits of the longer-term efforts," Barclays Capital analyst Brian Johnson told the Free Press. "We expect profitability in 2010."

 

 

The message that Ford is doing better also has reached workers, and it's complicating efforts to convince Ford's 41,000 UAW-represented workers to vote in favor of a modified labor contract.

 

 

Members of at least two UAW locals have voted to ratify the agreement, but in each case, the margin was close. Voting is to continue through the end of this week.

 

 

Ford executives have told UAW workers that they need the changes in order to remain competitive with General Motors Co. and Chrysler Group LLC, which obtained better labor deals during their troubles earlier this year.

 

 

For some, that's a tough sell.

 

 

"If you want to be competitive with GM and Chrysler, go through bankruptcy, and then we'll understand," Tammy Johnson of Redford Township said Sunday at UAW Local 600, which was holding an information meeting for UAW members.

 

 

Gaining ground

 

Ford already reported an $834-million profit for the first half of the year. Much of that profit was because of onetime gains from accounting charges related to a debt restructuring, but it also reflected real business improvements.

 

 

This year, Ford has gained market share both in the United States and Europe, even as it cut incentive spending.

 

 

Ford spent an average of $2,792 per vehicle on incentives in the United States during the first nine months of this year, or 27.7% less than last year, according to Autodata Corp., and it still gained a full point of market share.

 

 

(3 of 3)

 

Johnson estimates that the combination of reduced incentives and higher average purchase prices could help Ford realize a $300-million net pricing improvement in North America.

 

 

Eric Selle, a credit analyst with J.P. Morgan Securities, said recent plant closures, employee reductions and cost cuts have the company positioned to perform better as industry sales rebound.

 

 

 

 

Debt disadvantage?

 

Still, Ford's looming debt remains a major concern.

 

 

Joe Hinrichs, Ford's group vice president of manufacturing and labor affairs, told UAW workers in September that GM was able to cut its debt from about $60 billion before bankruptcy to about $17 billion.

 

 

Ford, the only domestic automaker that didn't ask for emergency federal loans this year, faces $35 billion in debt and other financial obligations that it must pay by 2013, Hinrichs said.

 

 

UAW President Ron Gettelfinger cited Ford's looming debt as one of the main reasons to approve additional changes to the union's labor contract with Ford.

 

 

"They have twice as much debt ...as what General Motors does," Gettelfinger said earlier this month.

 

 

Cash burn a 'huge deal'

 

Another challenge for Ford is that, even with deep cost cuts, it continues to burn through more cash than it is taking in. In 2008, the company burned through $21.3 billion and started the year with just $24 billion in cash and credit.

 

 

"It's a huge deal," Selle said. "If there is one number to know about when it comes to Ford, it's the cash burn."

 

 

In January, Ford Chief Executive Alan Mulally vowed to cut the company's cash burn rate and he has delivered: Ford's cash consumption for the first half of the year was $4.7 billion.

 

 

It's about the long term

 

To achieve a true turnaround, however, Ford must show that it can generate cash. Selle estimates Ford consumed an excess of $1.9 billion during the third quarter.

 

 

On Sept. 30, when Mulally briefed analysts, he said Ford's lineup of new products and cost savings from its global plan eventually will lead Ford to sustained profits.

 

 

"This is about creating a strong business for the long term," Mulally said.

 

 

During a conference about electric vehicles last week, Ford Executive Chairman Bill Ford talked about the company's problems as if they were already in the past.

 

 

"During our dark days in 2006 through last year, one of the things I feel best about is we didn't slash and burn our research and development budget," Ford said. "It was something that I felt very strongly about."

 

 

 

Contact BRENT SNAVELY: 313-222-6512 or bsnavely@freepress.com

 

 

 

 

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It will pass!

[Pioneer]

It will pass!

 

It will be hard to overcome KCAP's numbers for this to pass.

[MichiganTruck_Mafia]

It will pass!

 

Not without some vote rigging.

[gunnut69]

I cannot help but ask all of the Gary W. fans and the fans of the no vote, what does the words "Our Union" mean to you. Does it mean your plant? Does it mean your zone? does it mean your Region? What do we tell our brothers and sisters who have stood beside us in the past and have gotten screwed by our government and had to take the agreement that was handed to them or see their jobs just go away? I know we tell them we stood up to the company because we knew they couldn't. What they should have done was voted against the agreements and let the companies just file chapter 7 and just sell off their jobs. They would have showed strength and we would have been there to help them right?

Our Union was not built on the backs of people who care only about themselves and whether or not they are getting what they want and screw everyone else. In fact we make decisions that are for the betterment of all labor, yes even those people who work in non-union shops. We try our best to hold onto the what power we can during tough times so we can be strong during the good times. We do this because we dont just make a difference in Michigan, we make a difference in Ohio, Indiana, Kentucky, Tennessee, North Carolina, Texas, Arizona, California, NewYork, just to name a few. We cant and shouldn't just vote for us but for those other facilities and other brothers and sisters whose lives our vote will effect.

I know things in Michigan are horrible and we all hurt for our brothers and sisters who are hurting there, but it has never been more important to pull together and stand united with all of our brothers and sisters. I have heard pattern bargaining since I was a kid from my father and really didn't understand it until now. He always said it was important and it held our Union together. Made no sense to me why he would give up things because others at other companies did and get things because others did. Now I get it. We fight together. We win together. We lose together. So that's what SOLIDARITY is, Cool. I am proud to call my dad a Union member and I hope someday my son will be proud of me too. I will stand with others who need lifted up and count on them to stand with me when I need lifted up. I hope the vote turns out the way you want it to, but most of all I hope we have true solidarity in our hearts and our votes.

 

pattern bargaining was really useful to us in the past. what it really does is insure that all the uaw auto companies operate under the same rules and wages so none has a competitive advantage over the other in areas of wages or other compensation. now non-uaw companies arent just bit players in this game anymore. we dont have to worry about competing against anyone more than toyota,honda etc. with more players entering the game all the time.short of getting them organized pattern bargaining wont help us against them. what role do you see it playing in this unfortunate relatively new environment?

[Seniority]

We the people in order to form a more perfect union.The union is the membership not the "reps".

I'm voting NO!

[Captain723]

Not without some vote rigging.

If there was any vote rigging, don't you think it would have started at KCAP? Get real chicken little!

[Captain723]

It will be hard to overcome KCAP's numbers for this to pass.

correct, just wondering why more didn't vote?

[ReDemption]

It’s very obvious that we UAW members are getting sick of give, give and give. Live to fight another day, over and over.

 

2007 Concession Agreement: We all heard that with these concessions we would save the company, save product, and save our jobs. We got huge commitments to product with this agreement directly from the VEBA (most of them are re-issued as new in this concession contract attempt, again). They told us that we had to vote on allowing lower wage work force to be hired in at a 20% cap and that would also save the company, give us product, and make us comparable. That we must do this to live to fight another day!!

 

So we did it.

 

Since this time --------------------- FMC heads to the white house and says we’re fine; we will be profitable by 2011. We don’t need your money. Since then, FMC has reduced its workforce both hourly and salary. Jobs stations are out of control, brothers and sisters are performing jobs way beyond 90% standard. FMC closed plants (reducing cost) --------------- Bought people out (reducing cost) ---------------Forced salary people out (reducing cost) ------------- Paid members to retire (reducing long term costs) and I'm sure that I've missed many many more savings.

 

Look at us now.

 

FMC stock is up

FMC builds 3rd assembly plant in China for 490 million.

FMC is still paying its top CEO’s the best salaries and bonuses. (no pattern here)

FMC has posted profitability in the first 2 quarters this year (but they are holding back the 3Q results untill after the voting)

FMC spent 550 million on refurbishing the Michigan Truck Plant.

FMC has gained market share in all 19 European markets.

FMC looks better in the public eye then ever before.

 

Now we have to vote on lifting the cap to lower wage UAW members. We have to vote on an arbitrator ruling on our quest for gain without the right to strike. We have to allow this very same arbitrator the right to compare us to all U.S. competitors. They want us to give them the right to reduce the need of our tradesmen. We were all told in the last concessions that FMC is in bad trouble and we needed to do what we had to in order to survive. We did it, and FMC is on top and doing fine. What do we get back for it, more concessions. Wow thats some kind of pattern guys. I wonder what they come after if we get in bad shape. What will we have left? When will we fight? Who will be left to fight? What will be left to fight over?

 

But don’t worry, we will be “Comparable” and we’ll live to fight another day. We will be at 14 an hour, but we'll live to fight another day. We will be outsouced, but we'll live to fight another day.

 

Here's a history lesson on our "pattern bargaining".

 

In Oct 1979 the UAW acquiesence to concessions put Chrysler workers wages into competition. Beneath all the language about saving jobs, the UAW leadership demonstrated its willingness to make wages, benefits and then working conditions subject to competitive bargaining. The Chrysler workers pay was reduced by more then 2 and half dollars. Ford and GM UAW workers refused any sort of decrease in wages, the pattern bargaining was broken. The standard that upheld workers solidarity eliminated. In 1985 GM and Ford UAW workers wages and benefits were brought to parity with Chrysler ending their advantage.

 

So stop saying that it has always been good for the UAW because your wrong.

Edited October 27, 2009 by ReDemption

[TBodette68]

Thanks for the great post...vote no