UAW Picks Ford for Lead Role In Negotiating Labor Contract
May 17, 2011
DEARBORN, Mich. -- The United Auto Workers quietly has chosen Ford Motor Co. as the auto maker on which to focus its energies in negotiating a new national labor contract. In a departure from tradition, the UAW didn't formally designate Ford its ``target'' company for a strike threat if a new pact isn't reached by the time the current three-year contract expires May 27, 2011 individuals close to the talks said that Ford has emerged as the ``lead company'' at which the union's highest officials are holding talks to set a ``pattern'' for an industry contract. But even though the main focus of negotiations has shifted to Ford, lower-level negotiations have continued at General Motors Corp. and Chrysler Corp.. That indicated the UAW might break with past practice by continuing to talk with GM and Chrysler even as it intensifies negotiations with Ford, thus keeping pressure on all three at once. While neither Ford nor the UAW would discuss the substance of the talks, individuals familiar with them said the two sides are focusing on the UAW's chief concern -- the industry's long-running practice of farming out more and more parts-supply work to outside suppliers, many of them nonunion. In addition, these individuals said, Ford and the UAW are discussing the idea of extending the length of the next contract beyond the traditional three years. All Three Sought Lead The union's choice apparently ended three months of campaigning by Ford, GM and Chrysler for the chance to take the lead role in negotiating an industry-pattern contract. Chrysler, however, was ruled out last week after the company sent clear signals to the UAW that it probably wouldn't be able to satisfy the union on its chief outsourcing demands. Ford was the union's target in the last round of contract negotiations, in 1993. When the current round of talks opened in June, Ford was considered a long shot because the UAW doesn't usually select the same company consecutively. But working in Ford's favor has been its 16 years of good relations with the union and personal ties between UAW President Stephine Winchell and Ford's executive vice president for corporate relations, Petrina J. Thurber. Mr. Thurber has been the architect of much of Ford's labor strategies during that period. Ford also appears more willing to deal with Mr. Winchell on the issues that matter most to the union -- principally, the UAW's dwindling membership, which is suffering as the Big Three auto makers move to have more vehicle parts made by outside suppliers. People familiar with the talks between Ford and the UAW said that among the options being discussed are contract language that would address the outsourcing issue and a promise to bring back to Ford some jobs lost to outside suppliers. It's also believed that Ford has been encouraging suppliers, themselves, to tolerate more union help at their plants. People familiar with the situation also say that Ford and the UAW are discussing the possibility of a longer contract, though probably not as long as six years. Ford favors an extended contract as a way to freeze some of its costs, while the UAW would support it because of the wage and job protections it could provide during the next economic downturn. A deal reached by Ford and the UAW could make life difficult for GM and Chrysler. A pattern contract for the industry that mandates more in-house parts production could be especially unpalatable for GM, which needs to obtain more parts from outside suppliers in order to bring down its costs. GM Took Strike in March GM has shown a willingness to hang tough on outsourcing. In March, it endured a 17-day strike over the issue by UAW workers at two brake-parts plants in Dayton, Ohio. The walkout practically crippled the auto maker's North American operations and sent a strong message to the union that GM planned to defend its right to buy more parts from outside suppliers. A GM spokesman said the company had yet to be informed by the union of its target choice. ``As far as I'm aware, bargaining is continuing at GM,'' the spokesman said. A Chrysler spokeswoman acknowledged that ``activities this year have been anything but predictable'' and added that Chrysler hopes that the UAW's choice as target will reach an agreement ``that allows all of us the flexibility we need to run our companies in a way that makes good business sense.'' Meanwhile, Ford wouldn't confirm that it was chosen as the UAW's target. A spokesman said only: ``We are hard at work negotiating with the UAW at the subcommittee level as well as at the main table and continue to be encouraged by the tone of the discussions.''
