Ford strike avoided 0

Ford avoided a potentially dangerous nationwide strike in the USA. The company have missed out on an estimated $71 million daily profit loss and $273 million in daily revenue. However the most damaging consequence may have been the loss and damage of Ford’s illustrious reputation.

If the Ford strike did go ahead, it would have been the first one in 35 years. The first national strike for Ford since 1976 was a likely prospect. But UAW members at Ford voted 62% in favour of a new contract, coming back from voting 53% against it. A proposed labour deal has 14,845 members vote for it whilst 9,076 voted against it.

Harley Shaiken, a Labour Professor at the University of California said specified various reasons as to why workers were in favour of avoiding the Ford strike. These included an offer by the company of 12,000 new jobs, $6.2 billion in renovation and upgrades within Ford factories along with various projects drafted into the country from Asia and Mexico. She said “Sure you have workers who are angry and wish they could have gotten more. But what had been underestimated is how the jobs created in this contract reinforce the job security of existing workers.”

Bob King created jobs at both General Motors and Chrysler Group LLC, with 7,500 jobs made from both. Shaiken stated how important that was in changing people’s views of the current state of the industry. “The conventional wisdom was that manufacturing in this country was dead and gone. But Bob King has created jobs, while also hanging on to health-care benefits and pensions for senior workers and getting a 20 percent raise for entry-level workers. That’s a pretty impressive achievement in this economy.”

Jimmy Settles, the UAW Vice President, said that the Ford union members conceded that eventual conclusion of the Ford strike action was in everyone’s best interest.

He said “The Ford workers voting early on in the process were voting on emotion, but workers in plants with voting later in the process had a chance to learn everything about the agreement and understood how much their votes counted,”

What Ford employees were mainly concerned about was job security. In these economic downturns across the world, this is certainly a very sensitive subject which may put many livelihoods at risk. With Ford making these new promises, they would hope that the potential Strike action will not be an occurrence in the future.