http://www.forbes.com/sites/joannmuller/2011/09/09/fords-labor-problem-and-how-to-solve-it/
There is intergroup conflict between the hourly paid, UAW members and Detroit automakers. If the UAW members at Ford plants and the Detroit automakers do not come to an agreement about a new contract the UAW members will authorize a strike. The hourly workers made sacrifices so that Ford did not have to accept bail out money to avoid bankruptcy and now they want to recoup benefits and wages. White-collar workers were resinstated with raises, tuition assistance, and 401(k) matches. Ford white-collar employees pay 25% more of their health care insurance than UAW members and although white-collar employees' 401(k)s were reinstated, the pensions of hourly workers were never touched during the crisis.
Do you think that the UAW members should authorize a strike if there is no agreement on a contract? If there is a strike, what could be the outcomes of this conflict? What can the Detroit automakers do to manage this conflict?
-Steven Stanek
Most everyone knows that the auto industry was hit hard during the recession. The government had to help GM and Chrysler out, but they didn’t have to help Ford. Ford survived by having their employees take pay cuts, losing benefits and making other sacrifices. Since Ford’s employees helped them survive, it is now Ford’s turn to help out their employees. Ford should come to an agreement with the UAW so they don’t have to strike. Ford needs to work hard to make their UAW’s happy again. If Ford doesn’t come to an agreement with the UAW, a strike could occur. This would mean that most workers would stop working and thus production could shut down. Once production shuts down, Ford stops making money. To keep making money and growing, Ford needs to come to an agreement with the UAW.
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