Ford Starts Talks early with UAW

[DTP Body Door Hang]

Detroit News Article

 

Ford starts early talks with UAW

 

Mulally: Painful concessions needed from union; 'The only thing I care about is the competitiveness of Ford.'

 

Bryce G. Hoffman / The Detroit News

 

Advertisement

Get free headlines by e-mail

NEW! Get text alerts on your cell phone

 

 

 

* Printer friendly version

* Comment on this story

* Send this story to a friend

* Get Home Delivery

 

Ford Motor Co. CEO Alan Mulally is holding weekly meetings with United Auto Workers President Ron Gettelfinger in the run up to this year's watershed contract negotiations. He praised the labor leader for his willingness to work with Ford, but said painful concessions will be needed from the union if his company is to compete against foreign rivals.

 

"The automotive industry in the United States is very robust. The issue here is three automobile companies in Detroit," Mulally said during a wide-ranging discussion with journalists Wednesday night. To address that issue, Ford needs to become competitive in wages, benefits, work rules, flexible manufacturing and plant capacity. "I respect the union as an institution. (But) the only thing I care about is the competitiveness of Ford."

 

And Mulally stressed that a competitive Ford is good for the union, too.

 

"Ron Gettelfinger absolutely understands the situation we're in I don't know of anybody that cares more about Ford than Ron Gettelfinger," Mulally said. "On everything that we've asked him to do to help us restructure, he's supported us."

 

The auto talks will begin this summer and will wrap up in September when the current four-year contract expires.

 

Gettelfinger is not the only person Mulally has been meeting with lately. On Wednesday, he confirmed that he and Ford Americas President Mark Fields flew to Tokyo last month for a two-hour meeting with Toyota Motor Corp. Chairman Fujio Cho.

 

"We talked about advanced technology, we talked about fuel efficiency, we talked about free trade, we talked about the regulatory environment, we talked about areas where we could continue to work together for the good of the industry," Mulally said, though he would not say if any agreements had been reached between the companies.

 

Mulally said he has also held meetings with senior executives from General Motors Corp., DaimlerChrylser AG and BMW AG, and hopes to hold talks with the leaders of other auto manufacturers soon.

 

"I really want to connect with each of the players in the industry, and I want to do it quickly," Mulally said. "We have so many things in common that we're dealing with."

 

Also on hand Wednesday night was Ford's new global product development czar, Derrick Kuzak.

 

Mulally, who referred to Kuzak as "our hero," tapped him to lead the consolidation of Ford's disparate product development arms in North America, Europe and Asia. Kuzak told The Detroit News that he held his first meeting with his new team Wednesday morning.

 

In a memo distributed to Ford employees later Wednesday and obtained by The News, Mullaly outlined his new global structure for vehicle development.

 

Rather than a loose collection of regional operation units, Mulally has established three new groups to oversee the process of bringing vehicles from sketch pad to sheet metal. The new divisions are:

 

# Product planning and strategy. The group will be responsible for developing a global product plan for the Ford brand, simplify vehicle platforms and powertrains and allocate spending across the Ford product line-up. An executive director in charge of the group will be named later.

 

# Product development finance: The team's job will be to make sure Ford is getting the most bang for its product development buck. It will be led by David Prystash, Ford's controller for global product development.

 

# Core engineering. The division's goal will be to simplify Ford's parts and subsystems through greater sharing and reuse of common designs. Part of its mission will be to ensure vehicles have a "consistent feel and sound that is unmistakably Ford," the memo said.

 

During his meeting with reporters, Mulally said he is pleased with the progress Ford is making, adding that he is more optimistic about the future than he was when he was hired in September.

 

But he and other Ford executives said Wednesday that there is still a lot more work to do.

 

"Despite the numbers, (2006) was a year of incremental progress for us," Fields said. "It's like building a house. We built the foundation last year. But you don't see the house. You see a hole."

 

However, Fields acknowledged that Ford failed to meet its stated goal of slowing its market share decline in 2006.

 

Mulally also said:

 

# Ford's sale of its Aston Martin brand will be completed "this year."

 

# The company is still evaluating its brand portfolio and would not rule out a sale of Jaguar, though he said the division is showing tremendous improvement.

 

# He wants to create a single, global Ford brand that uses common platforms with minor variations to meet consumer needs worldwide.

 

You can reach Bryce Hoffman at (313) 222-2443 and bhoffman@detnews.com.

[NoMoVisteon]

Detroit News Article

 

Ford starts early talks with UAW

 

Mulally: Painful concessions needed from union; 'The only thing I care about is the competitiveness of Ford.'

 

Bryce G. Hoffman / The Detroit News

 

Advertisement

Get free headlines by e-mail

NEW! Get text alerts on your cell phone

 

 

 

* Printer friendly version

* Comment on this story

* Send this story to a friend

* Get Home Delivery

 

Ford Motor Co. CEO Alan Mulally is holding weekly meetings with United Auto Workers President Ron Gettelfinger in the run up to this year's watershed contract negotiations. He praised the labor leader for his willingness to work with Ford, but said painful concessions will be needed from the union if his company is to compete against foreign rivals.

 

"The automotive industry in the United States is very robust. The issue here is three automobile companies in Detroit," Mulally said during a wide-ranging discussion with journalists Wednesday night. To address that issue, Ford needs to become competitive in wages, benefits, work rules, flexible manufacturing and plant capacity. "I respect the union as an institution. (But) the only thing I care about is the competitiveness of Ford."

 

And Mulally stressed that a competitive Ford is good for the union, too.

 

"Ron Gettelfinger absolutely understands the situation we're in I don't know of anybody that cares more about Ford than Ron Gettelfinger," Mulally said. "On everything that we've asked him to do to help us restructure, he's supported us."

 

The auto talks will begin this summer and will wrap up in September when the current four-year contract expires.

 

Gettelfinger is not the only person Mulally has been meeting with lately. On Wednesday, he confirmed that he and Ford Americas President Mark Fields flew to Tokyo last month for a two-hour meeting with Toyota Motor Corp. Chairman Fujio Cho.

 

"We talked about advanced technology, we talked about fuel efficiency, we talked about free trade, we talked about the regulatory environment, we talked about areas where we could continue to work together for the good of the industry," Mulally said, though he would not say if any agreements had been reached between the companies.

 

Mulally said he has also held meetings with senior executives from General Motors Corp., DaimlerChrylser AG and BMW AG, and hopes to hold talks with the leaders of other auto manufacturers soon.

 

"I really want to connect with each of the players in the industry, and I want to do it quickly," Mulally said. "We have so many things in common that we're dealing with."

 

Also on hand Wednesday night was Ford's new global product development czar, Derrick Kuzak.

 

Mulally, who referred to Kuzak as "our hero," tapped him to lead the consolidation of Ford's disparate product development arms in North America, Europe and Asia. Kuzak told The Detroit News that he held his first meeting with his new team Wednesday morning.

 

In a memo distributed to Ford employees later Wednesday and obtained by The News, Mullaly outlined his new global structure for vehicle development.

 

Rather than a loose collection of regional operation units, Mulally has established three new groups to oversee the process of bringing vehicles from sketch pad to sheet metal. The new divisions are:

 

# Product planning and strategy. The group will be responsible for developing a global product plan for the Ford brand, simplify vehicle platforms and powertrains and allocate spending across the Ford product line-up. An executive director in charge of the group will be named later.

 

# Product development finance: The team's job will be to make sure Ford is getting the most bang for its product development buck. It will be led by David Prystash, Ford's controller for global product development.

 

# Core engineering. The division's goal will be to simplify Ford's parts and subsystems through greater sharing and reuse of common designs. Part of its mission will be to ensure vehicles have a "consistent feel and sound that is unmistakably Ford," the memo said.

 

During his meeting with reporters, Mulally said he is pleased with the progress Ford is making, adding that he is more optimistic about the future than he was when he was hired in September.

 

But he and other Ford executives said Wednesday that there is still a lot more work to do.

 

"Despite the numbers, (2006) was a year of incremental progress for us," Fields said. "It's like building a house. We built the foundation last year. But you don't see the house. You see a hole."

 

However, Fields acknowledged that Ford failed to meet its stated goal of slowing its market share decline in 2006.

 

Mulally also said:

 

# Ford's sale of its Aston Martin brand will be completed "this year."

 

# The company is still evaluating its brand portfolio and would not rule out a sale of Jaguar, though he said the division is showing tremendous improvement.

 

# He wants to create a single, global Ford brand that uses common platforms with minor variations to meet consumer needs worldwide.

 

You can reach Bryce Hoffman at (313) 222-2443 and bhoffman@detnews.com.

I read the same article in the Det News online as well, man, I'm glad I took the buyout! :happy feet: Keep in mind too, that Ford IS NOT done yet with it's downsizing and closing more plants, it didn't take a rocket scientist to see that the concessions ARE COMING. Better strap yourselves in tight.........the ride in the storm is going to get rough. .... :fan:

[Footballfan]

Does anyone really think that Mually is anything other than an axe man? I like the blurb on how he commended the UAW leadership for cooperating with the cutbacks. Isn't the union supposed to look out for its membership? What a gross lack of leadership all around.

[dark270]

Does anyone really think that Mually is anything other than an axe man? I like the blurb on how he commended the UAW leadership for cooperating with the cutbacks. Isn't the union supposed to look out for its membership? What a gross lack of leadership all around.

 

 

EXACTLY......

[manufmanager]

Does anyone really think that Mually is anything other than an axe man? I like the blurb on how he commended the UAW leadership for cooperating with the cutbacks. Isn't the union supposed to look out for its membership? What a gross lack of leadership all around.

 

I disagree with you. The company can only get cut so far before someone has to start building new vehicles. I do think Non-Skilled Wages will be reduced by about 20%. Skilled Trades are paid fair market price for their position. I don't think it would be a good idea to take their salary below industry averages. The good days are long gone... :titanic:

[Dakota Kid]

I disagree with you. The company can only get cut so far before someone has to start building new vehicles. I do think Non-Skilled Wages will be reduced by about 20%. Skilled Trades are paid fair market price for their position. I don't think it would be a good idea to take their salary below industry averages. The good days are long gone... :titanic:

 

Cutting? Concessions? What is the fair market price for skilled trades in India, Brazil and Mexico? If the UAW can get a new contract in 07 and secure fair benifits, great, but for who?

 

http://www.chron.com/disp/story.mpl/ap/fn/4445401.html

 

Mulally is in position to keep the blood off the Ford Families' hands. While Alan is cutting, Billy's abuying, everywhere except North America. It's union busting and corporate greed.

 

There's a line forming for the big bucks, but don't look for it. We're not invited.

[Trimdingman]

I predict that you will get a decent contract. I believe that they went to Japan to read them the riot act. When they cry in the media, they are really talking to the Japanese. It is all a chess game.

[J-150]

Cutting? Concessions? What is the fair market price for skilled trades in India, Brazil and Mexico? If the UAW can get a new contract in 07 and secure fair benifits, great, but for who?

 

http://www.chron.com/disp/story.mpl/ap/fn/4445401.html

 

Mulally is in position to keep the blood off the Ford Families' hands. While Alan is cutting, Billy's abuying, everywhere except North America. It's union busting and corporate greed.

 

There's a line forming for the big bucks, but don't look for it. We're not invited.

 

 

 

 

 

the company is losing money. Fast. They are losing share. Fast. The company mortgaged off a lot of assets as a last "hail Mary". They could very well go bankrupt and EVERYONE loses their jobs.

 

So please enlighten us to where the greed is?

[Dakota Kid]

the company is losing money. Fast. They are losing share. Fast. The company mortgaged off a lot of assets as a last "hail Mary". They could very well go bankrupt and EVERYONE loses their jobs.

 

So please enlighten us to where the greed is?

 

Well, I'm only the son of an accountant but I can add 2+2 and get 3. Dad always told me a good bean counter can make the numbers tell whatever story you want them to tell. So to answer your question with another, and I hate it when my kids do this to me. One of the largest companies in the world is going bandrupt but.........

1. multi-million dollar bonas to Alan Mulally
   
2. Hire gun slinger Mark Fields
   
3. pay off Jack Nasser
   
4. Pay off the Firestone mess to get out of the publics eye
   
5. invest billions in China
   
6. invest billions in Mexico
   
7. buy truck plant in Brazil ( $2 billion)
   
8. invest a couple billion in diesel plant in India
   
9. buy out thousands of UAW and salaried workers, then hire them back temporarily
   

Are they going bankrupt? Or relocating? OK they're loosing money but it's a tough pill to swollow when this other stuff is going down too.

[cobra6603]

Well, I'm only the son of an accountant but I can add 2+2 and get 3. Dad always told me a good bean counter can make the numbers tell whatever story you want them to tell. So to answer your question with another, and I hate it when my kids do this to me. One of the largest companies in the world is going bandrupt but.........

1. multi-million dollar bonas to Alan Mulally
   
2. Hire gun slinger Mark Fields
   
3. pay off Jack Nasser
   
4. Pay off the Firestone mess to get out of the publics eye
   
5. invest billions in China
   
6. invest billions in Mexico
   
7. buy truck plant in Brazil ( $2 billion)
   
8. invest a couple billion in diesel plant in India
   
9. buy out thousands of UAW and salaried workers, then hire them back temporarily
   

Are they going bankrupt? Or relocating? OK they're loosing money but it's a tough pill to swollow when this other stuff is going down too.

 

 

I am going to have to say yes if oil keeps going up if oil drops or holds at 55.00 a barrel its a crap shoot alot depends or pressure from india and china . Since they put up only u.s. plants as collartal relocating might be what they are up to . Ford of japan or china hmmmmm might happen. :reading:

[Imawhosure]

I am going to have to say yes if oil keeps going up if oil drops or holds at 55.00 a barrel its a crap shoot alot depends or pressure from india and china . Since they put up only u.s. plants as collartal relocating might be what they are up to . Ford of japan or china hmmmmm might happen. :reading:

 

 

Relocate? Not as long as the Democrats have control of congress; with a distinct possibility of retaking the WhiteHouse. To many jobs are tied to Ford and GM, not to mention the UAW is a cash cow for liberals. They will raise some sort of barrier if need be, to at least put the kabosh on vehicles that are actually imported.

 

Since N. America is the largest automarket in the world, Ford has no choice but to stay put for the time being. Not to mention------->most people believe that CEOs could care less where their goods are made which they get the money in their pockets from.

 

For CEOs, that statement may very well be true as they must perform for shareholders. But I contend that it is NOT true for owners of companys that were born here.........for the most part, anyway.

 

Let me put it to you this way-------------->when you retire, you could live like a prince in Mexico, like a king in Brazil, or if you moved further South like an emporer.

 

Are you seriously considering going there eventhough your life would be that much better as far as money?

 

Me either!!!!!!!!!

 

P.S. Plus, if I remember correctly, where the Fusion is built is a stones throw from the Arizona border. The reason??? Because as you go deeper into the NEW SOUTH lol, the infrastructure SUCKS!!!!!! Ever been to Mexico that is not a resort area? Let me tell ya, it will take 50yrs of infrastructure improvement before they can support anything resembling an auto facility that puts out more than 35jph, to be shipped back here from much further South than the Fusion plant.

 

If you do not believe me, ask people who have traveled Mexico.

Edited January 5, 2007 by Imawhosure

[Pumpmaster]

I predict that you will get a decent contract. I believe that they went to Japan to read them the riot act. When they cry in the media, they are really talking to the Japanese. It is all a chess game.

 

The usual: assertions. Platitudes. Rhetoric. No facts.

 

Define "decent contract." Be specific.

[dark270]

The usual: assertions. Platitudes. Rhetoric. No facts.

 

Define "decent contract." Be specific.

 

:hysterical:

 

 

now that's funny...asking him to be specific is like asking a whale to beach themselves and then go shopping!

[OK]

I I do think Non-Skilled Wages will be reduced by about 20%. Skilled Trades are paid fair market price for their position. I don't think it would be a good idea to take their salary below industry averages. :titanic:

 

Non skilled wages in Toyota, Honda, Mercedes, plants in the U.S. is about the same as Ford pays. Why would it be a good idea to reduce non skilled wages below industry averages but not skilled? How long until the Toyota dealer tells the customer we pay our workers $27/hr because our cars are better. Ford only pays $XX/hr.

[J-150]

Well, I'm only the son of an accountant but I can add 2+2 and get 3. Dad always told me a good bean counter can make the numbers tell whatever story you want them to tell. So to answer your question with another, and I hate it when my kids do this to me. One of the largest companies in the world is going bandrupt but.........

1. multi-million dollar bonas to Alan Mulally
   
2. Hire gun slinger Mark Fields
   
3. pay off Jack Nasser
   
4. Pay off the Firestone mess to get out of the publics eye
   
5. invest billions in China
   
6. invest billions in Mexico
   
7. buy truck plant in Brazil ( $2 billion)
   
8. invest a couple billion in diesel plant in India
   
9. buy out thousands of UAW and salaried workers, then hire them back temporarily
   

Are they going bankrupt? Or relocating? OK they're loosing money but it's a tough pill to swollow when this other stuff is going down too.

 

 

all of the above is the cost of doing business.

 

You want executives? You gotta pay. You want to rid of the old CEO? Guess what? He had an iron clad, lawyer drafted contract. Gotta pay him. Pay off Firestone mess? Yup. Same thing. Still a bill needing paymnet. The rest are naturally occuring investments that need to be made in good and bad times.

 

Maybe as the son of an accountant you should have some insight into this.

 

Your accountant Daddy should also be aware of Sarbanes-Oxley which says that by law accountants cant spin the books anymore or face jail time. Or maybe your Daddy likes to break that law.

Edited January 6, 2007 by J-150

[Trimdingman]

The usual: assertions. Platitudes. Rhetoric. No facts.

 

Define "decent contract." Be specific.

 

I guess 4% plus another 3% in lump sums plus a slightly clawed back COLA over 4 years. Benefits will increase normally, except that health care will be noticably affected. It will, however, look much worse than it actually is, and you will make it up in profit-sharing. That is what my crystal ball tells me. If I am off by more than 25%, then you can say that I am wrong.

[Atlas]

I guess 4% plus another 3% in lump sums plus a slightly clawed back COLA over 4 years. Benefits will increase normally, except that health care will be noticably affected. It will, however, look much worse than it actually is, and you will make it up in profit-sharing. That is what my crystal ball tells me. If I am off by more than 25%, then you can say that I am wrong.

Profit sharing?

[Trimdingman]

 

Ford, themselves said that they will be profitable by 2009. The contract goes to 2011. There will be profit sharing. In Canada, we don't get it, just a $1700 bonus every year. It usually goes up by $200 every contract. So far, our contracts are still just three years.

[wildosvt]

Profit sharing?

 

 

Im sorry brother. I had to snatch her!

[NoMoVisteon]

Profit sharing?

Huh? What's that? Haven't seen THAT in a LONG TIME

[NoMoVisteon]

Im sorry brother. I had to snatch her!

Now that you've changed your avatar, Wildosvt, guess you're telling us that this topic made you pop a big boner.......... :banmolest: :banmolest: :flexing:

[Trimdingman]

Now that you've changed your avatar, Wildosvt, guess you're telling us that this topic made you pop a big boner.......... :banmolest: :banmolest: :flexing:

 

JFC, I didn't want to get you yahoos all worked up. Don't jack off all over the monitor. I just gave you my prediction.

[wolfpackrazorback]

I wonder if the remaining few thousand workers will vote yes on any more wage concessions. The price of milk isnt getting any cheaper.

[wildosvt]

Now that you've changed your avatar, Wildosvt, guess you're telling us that this topic made you pop a big boner.......... :banmolest: :banmolest: :flexing: