January 24, 2006
Ford to Cut 25,000 Jobs - Unions Wonder What Happened
Ford Mortor Company just announced that they are being forced to phase out 14 manufacturing plants in the U.S. and trim 25,000-30,000 jobs. This comes on the heels of General Motors' decision to close 12 facilities and cut 30,000 jobs. Also, last year, DaimlerChrysler announced that it would begin producing cars in China for sale in the U.S. These announcements don't discuss the additional fallout that will result at parts suppliers from Delphi and Visteon to smaller supporting companies. Taken in combination, the cuts could ultimately result in the loss of hundreds of thousands of jobs in this country. The impact on individuals and families is devastating. What forced these moves and when will they stop?
Liberals will attack these cuts and claim that they result from overpaid executives--the politics of envy. Democrats will blame the Republicans, because they seek power. Union leaders will say that they are shocked and claim that management has failed, because these leaders cared more about short-term wins than long term security for members. Leftists will say that a solution is simply to overpay labor throughout the global economy, because they never had a clue to begin with. But, the average worker is more interested in supporting his family than in looking for scapegoats and phony solutions. He's the one paying the price and wonders who is supposed to be representing him--who is supposed to help him. Well, in short, the people who are casting blame and looking in the wrong direction for answers are really the ones that are failing our workers--and, our nation.
Unions have forced wages and benefits from U.S. manufacturers that far exceed the productivity of workers, and the unions have forced the closings of major industries and companies in our country. The labor dilemma is described in this article and discusses problems such as having to pay 12,000 workers to do nothing and grass cutters getting $65 an hour--not to mention that the Democrats want to use this problem in which they are culpable to call for commissions and more government "entitlements." (I can't stand that term.) Such waste doesn't help workers...it kills companies and results in unemployment.
It's time that the American worker realized that those who claim to care about him and who claim to help him are only making matters worse. Unions, with the help of the Democratic Party, are destroying companies and are costing them jobs. Workers and families are important and deserve better.
Posted by Woody at January 24, 2006 03:40 AM | TrackBackExactly. Unions cause more loss of jobs than so may other factors. It's too bad people don't see this too....one would think, after so many major losses in the past few years, why hasn't there been some MAJOR anti union efforts/campaigns??
Maybe it's time to start one.
Posted by Raven at January 24, 2006 05:58 AM
The union big wigs love to bring up the CEO's salary, but not their own bloated salaries. And using the union members' dues to finance Democrat campaigns which give the unions even more power is part of the problem. The only jobs it secures is those who work for the union. Notice none of them are out there beating the pavement, looking for work.
I've had opportunities to join a union and emphatically refused. In one case it caused me to lose my job. Tell me what's wrong with THAT picture.
Posted by Oyster at January 24, 2006 06:04 AM
Part of the problem is the PRODUCTS Ford produces. Various parts are good, but overall things are CRAP!
Case in point, I have a 97 T-Bird with a V-6. Ford stroked the same V6 and put it in their F-150 pickups, but never offered the engine in their cars. I'd like to stroke my V6, but Ford in their infinite stupidity refuses to offer crucial information or better yet, offer a kit to purchase.
I deal with Ford EDI department on purchasing. It is a mess. Ford wastes more money here in a area that should be saving Ford money. Best term I heard it called comes from the movie, "Heartbreak Ridge". This part of Ford is a Cluster F***!
And need I go on about engineering weaknesses that Ford ignores and never puts out a corrective, heavier duty part for?
No wonder Ford is losing market share.
Posted by PCD at January 24, 2006 08:20 AM
The unions are, IMO, a HUGE part of the problem, but here's Ford, losing their assets, and spending MILLIONS on *concept* cars and pickups that will NEVER see the market or the street..
Detroit Auto Show (NAIAS) 2006 - Photo Gallery - MSN Autos
Nice rides, now try spending THAT money on stuff that will come to fruition..
Posted by TexasFred at January 24, 2006 02:28 PM
One reason unions are hassling WalMart is their dwindling membership. This may speed efforts up, as desperation sets in.
Posted by LASunsett at January 24, 2006 02:58 PM
Texas Fred, the concept cars are obligatory investments that come out of R&D and marketing budgets. They are necessary to develop improved products, create consumer interest, and satisfy investors that the company is moving forward. If Ford stayed out of the Detroit Auto Show or had nothing new to show, then their sales would die.
My son flew up to the Detroit Auto Show last week and, by coincidence, just sent me an email with about 150 pictures from that, which took forever to view but which I did in its entirity to be a good dad. From his pictures, the Shelby Mustang 500 looks pretty cool to me.
Posted by Woody at January 24, 2006 03:52 PM
You are right on target with this. I wanted to post on this topic at my site, but I've been too busy to spend any length of time at the keys... BUT I do have an anecdote for you.
My neighbor works for Ford and she is sometimes required by her union to be "on call" or something so one or two days a week she goes to the plant and punches in then LEAVES for the rest of the day until it's time to go back and punch out! WTF?
Unions are corrupt through and through. That is the root of the problem. The other part of the problem is that most American consumers are selfish and ignorant and don't know or care how their purchases affect the world around them. The very same union members who complain about people buying KIA's will drive past my locally owned family business to buy at Lowes or Home Depot for a miniscule savings sending money out of our local economy to out of state corporations and putting jobs of people in their own neighborhoods in jeopardy.
Don't get me wrong. I'm all for free trade, but people need to be aware that they get what they pay for and if you only support the big box stores like Wal Mart, Best Buy, Home Depot, and Lowes one day that's all you'll have to choose from and you will regret it.
PS> Every car I've ever bought was an American made GM product and I've been happy with every one of them.
Posted by Woody (a different one) at January 25, 2006 06:51 AM
I remember when I owned a Japanese car and a German car, and my parents were besides themselves. (My dad was in WWII.) But, at that time, the cost to value of American cars was much worse than foreign cars--primarily due to our higher labor costs and management's poor anticipation of changing markets.
American management later stepped up and addressed market desires, but union contracts continued to take value away from the consumer and to take that consumer money to reward unproductive workers. Rather than having $2,000 more in quality features, that money went to pay auto workers much higher wages than similar manufacturing jobs in this country.
Nevertheless, I eventually got rid of my German car and intentionally bought an American one, just as many others did in wanting to buy American. It's too bad that the unions didn't appreciate the U.S. consumers and reciprocate with fewer unreasonable demands of pay for no productivity.
Now, they are killing their employers and have themselves to blame. We saw the same thing in the steel industry. Eastern Airlines was killed by the unions. After the unions took everything the companies had to offer, the companies and their jobs died.
Greed and corruption are the themes at unions--not worker safety or fair wages. It's get what you can while you can and pretend the future doesn't exist.
Posted by Woody at January 25, 2006 08:34 AM
I live in Iowa. The UAW killed many tractor manufacturers here, now they are killing US Auto Makers. Look at the auto plants in Tennessee that are non-Union. They turn out good products.
Unions have turned into little more than mafia families.
Posted by PCD at January 25, 2006 12:41 PM
