coming big uaw strike?
#46
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#47
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Fortunately, the strike is not disrupting the big Detroit Auto Show, which is still in progress as we speak.
https://naias.com/
https://naias.com/
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#49
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well looks like ford is building the bronco in china now so that should help them. ![Big Grin](https://www.clublexus.com/forums/images/smilies/biggrin.gif)
https://www.carscoops.com/2023/09/ch...271-hp-engine/
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https://www.carscoops.com/2023/09/ch...271-hp-engine/
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#51
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So the rough math is Ford makes $10 billion/year in profit. They have something like $70 billion in long term debt. 40% increase in hourly wage will basically kill Ford.
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#52
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GM actually operates plants in South Korea that, although not utilizing American labor, are at least unionized, so they aren't paying Chinese-style semi-slave wages....and, of course, South Korea is one of our allies, in contrast to the Communist Government of China, which is arguably our greatest potential opponent today. One reason I bought an Encore GX (among MANY other reasons), and may end up purchasing another one in a few more years, is the fact that it is at least built in Korea in the unionized plant, rather than in a Chinese sweat-shop.
https://www.autoexpress.co.uk/car-ne...7.50%20a%20day.
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#53
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It's actually closer to 60% effective, since the ask is a 46% increase AND a 20% reduction in hours. If all of the UAWs demands were met (including restoration of pensions without eliminating 401k match--talk about double dipping!), Ford's total labor cost will be $150/hr, vs. $64/hr today. At the current number of 57,000 union employees, that would be an additional labor cost of $5B/year, or half of the remaining profit. That certainly would make servicing a $70B debt challenging....
Last edited by geko29; 09-16-23 at 05:28 AM.
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#55
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If all of the UAWs demands were met (including restoration of pensions without eliminating 401k match--talk about double dipping!), Ford's total labor cost will be $150/hr, vs. $64/hr today. At the current number of 57,000 union employees, that would be an additional labor cost of $5B/year, or half of the remaining profit. That certainly would make servicing a $70B debt challenging....
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#56
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For one thing, just look at history. When they did pay pensions, decades ago, the Big Three (particularly GM) controlled most of the domestic vehicle market. Then they got cheap and started cutting wages, eliminating pensions and exporting job overseas. The more they did so, the more of the domestic market they lost, and the worse things became for them....until they went bankrupt. It was a classic case of corporate greed catching up with them.
The Big Three also asked UAW members to make some BIG concessions in 2008/2009, for the bankruptcy/reorganizations, which they did. But since then, they have not been willing to do very much for the workers in return, and simply farmed more jobs out overseas.
And we wonder why we're seeing strikes.
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Last edited by mmarshall; 09-16-23 at 01:14 PM.
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#57
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As almost every other business that once had a pension has figured out, aside from the government, pensions are not sustainable. For government pensions, all you have to do is increase taxes to make the payments. A publicly traded company doesn't have that luxury.
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#58
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As almost every other business that once had a pension has figured out, aside from the government, pensions are not sustainable.
For government pensions, all you have to do is increase taxes to make the payments. A publicly traded company doesn't have that luxury.
For government pensions, all you have to do is increase taxes to make the payments. A publicly traded company doesn't have that luxury.
First, you have to remember that although companies can't increase taxes, they can, and do, increase prices.....we have seen that in spades the last few years in many industries, although, with vehicles, more at the dealer level than the manufacturer level. Second, like I said earlier, look at history......The Big Three were at their best, and making their best profits (1950s/60s) when they WERE paying high wages and good pensions, and when the UAW was at its strongest. It was an unmistakable pattern......the cheaper and more Scrooge-Like the companies got over time, and the more they took away from their employees, and the more jobs they farmed out overseas, the more market-share they lost, and the worse things got for them. Like it or not, Karma caught up with them.
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#59
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First, you have to remember that although companies can't increase taxes, they can, and do, increase prices.....we have seen that in spades the last few years in many industries, although, with vehicles, more at the dealer level than the manufacturer level. Second, like I said earlier, look at history......The Big Three were at their best, and making their best profits (1950s/60s) when they WERE paying high wages and good pensions, and when the UAW was at its strongest. It was an unmistakable pattern......the cheaper and more Scrooge-Like the companies got over time, and the more they took away from their employees, and the more jobs they farmed out overseas, the more market-share they lost, and the worse things got for them. Like it or not, Karma caught up with them.
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#60
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I'm not saying that all of the current tech-features in vehicles are unnecessary, but it has become excessive, and we have clearly gone from producing driving-machines to producing Spock and Captain-Kirk machines.
What caught up with them is making crap products.
Toyota showed up with far better quality and reliability the rest is history.
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