AUTOMOTIVE INSIGHT: UAW Miffed at Ford and CAW

May 16th, 2008 at 11:10am

As heard on
WWJ Newsradio 950

Listen to this story:

CAW Logo

Ford and the CAW just agreed to a contract that’s going to be really hard to swallow for GM and Chrysler and the UAW.

The CAW says it has an agreement with Ford for a new contract that doesn’t involve two-tier wages. I’m sure that didn’t go over well with the UAW, which made major concessions to Ford last year on this issue.

And GM and Chrysler are going to want to get two-tier wages out of the CAW to help them get competitive, and to keep the labor peace with the UAW.

So why would Ford do this? Because later this year it launches the Flex, an extremelyFord Logo important crossover for Ford, and which is built in Canada. In today’s market, the company can not afford to miss launching this vehicle on time. And so it bought labor peace from the CAW, which is really going to irk Chrysler, GM and the UAW.

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