What Did Ford Give To Be Uaw'S Target ?

Everyone wants to be first, and that's obviously a plus for Ford in that regard, said JP Morgan analyst David Bradley. The question is: `What price did they have to pay to be first?'

The UAW told Ford executives Tuesday it had selected the company to be the first of Detroit's Big Three automakers to hammer out a new labour contract.

Union officials stopped short of referring to Ford as its traditional strike target. In the past, the UAW has selected one of the Big Three to start serious bargaining about two weeks before the contract expires.

Automakers prefer to be the target because they can dictate some of the contract terms, even though they run the risk of a strike. Ford, which was also the target in 1993, did just that. Expecting to hire thousands of new workers, it negotiated a grow-in provision allowing it to pay new hires at 70 per cent of the full rate. Ford has brought on more than 20,000 new hourly workers in three years.

 

Since January, analysts and other auto industry observers believed Chrysler Corp would be the target because it outsources more work than its domestic competitiors and might be willing to cut back.

Outsourcing