Ford Not Immune to Bailout Fallout

Ford workers are threatening to leave the Blue Oval without its workforce.

Quite the cheery bunch, aren't they?

Lately, UAW workers have been trying to reach a new deal with Ford. And they are not happy.

It’s no secret that the American automotive industry has been behind the 8-ball in the last 25 or so years, consistently placing behind its Japanese, German, and most recently Korean rivals. Chrysler and General Motors hit bottom in 2008, both filing for bankruptcy in an attempt to keep the companies afloat in the interest of the country’s economy.

And so, GM, unaffectionately dubbed “Government Motors” by many in both the political and public sectors, was reborn at eleventh hour. What was once the world’s largest manufacturers of motor vehicles is now owned primarily by the government. The company has since made great strides to reattain its place at the top of the food chain, thanks to its consistent high-volume sellers like the Impala (sold en masse to various rental agencies and police departments around the country) and American favorites like the Silverado pickup (and all its variations, up to and including commercial-grade).

Of course, Chevrolet is not the only reason General Motors is in the game – the company has various subdivisions overseas that its American counterparts can source technology and designs from. Holden in Australia is responsible for the revived GTO/G8 before Pontiac’s death, whose underpinnings can be found in the latest Camaro. Opel, a German subsidiary, can lay claim to many of the chasses GM has used in America in the past decade: Malibu, Cobalt, Astra, and Sky amongst others (and their more expensive counterparts from Buick). Cadillac is surging as a brash alternative to the likes of Lexus and Mercedes. Buick has swelled in China, thanks to an emerging upper-middle class.

But parts of GM are defunct, as per conditions of the company’s restructuring: Pontiac died not a valiant death, but wheezing, grasping its chest for air. Saturn died a guinea pig scapegoat, taking the falls for failed new ventures (such as the Astra). And in the process, tens of thousands of blue-collar workers lost their jobs in factories as assembly line workers and other manual laborers. Normally, in a situation like this (where a large number of union jobs were lost), the UAW would be all over the scene. However, a clause in the legal papers of GM’s salvation included a “no-strike” policy. The same goes for Chrysler.

However, Ford workers are not bound by that, since the Blue Oval didn’t directly take any of the “bailout money” partitioned by the federal government. UAW workers at Ford’s plants are threatening to strike in the next two weeks if their various conditions and demands are not met by the September 14th deadline, when their current contract expires.

It seems rather likely, given the high percentage of workers approving the strike.

Good luck, Ford.