United Auto Workers Turn Down Ford Contract For Flat Rock Plant

Workers in Flat Rock, Michigan have turned down a production contract that would have brought money and new jobs to the area. The contract was turned down after similar offers were made in Chicago, IL and Wayne, Mich.

The four-year agreement has been winding down and managed to gain some support before voting. According to reports workers at the main production plant agreed to the contract however the workers at an interior-parts plant in Saline, Mich. rejected the offer. According to an email 59% of production workers and 51% of skilled tradesmen voted against the contract.

Union leaders have been traveling around to Ford plants in an attempt to receive a “yes” vote for the agreement however concessions made in 2009 have slowed progress towards an agreement.

What is known is that the inability for the UAW to reach an agreement could mean trouble for the union as recent surveys have shown a “disenchanted” population in terms of unions support.

The Wall Street Journal spoke with Gary Chaison, a labor professor at Clark University in Worcester, Mass. who said turning down the contract would mean each worker loses a $6,000 signing bonus and $1,500 in payments over the next four years, not a small chunk of change in a weakened economy.

According to Mr. Chaison:

“This is happening at a time when the labor movement is trying to salvage its reputation and prove it’s a job creator not a job loser,” and “By rejecting this agreement the membership at Ford will be showing just the opposite. They will be eliminating jobs for higher pay. The labor movement’s reputation will be severely tarnished.”

The contract requires a majority of votes to be ratified. In the meantime many Ford workers at the plant say the contract lacks real wage increases to fend off inflation for current employees at the company, while providing no increase for pensioners and allows 2009 provisions that workers are against to stay in place in terms of an absentee policy, break time and holidays scheduling

With a walk out possible and union executives unable to suffer the loss of a job creating contract it’s likely some type of compromise will be made that can benefit both sides.

Do you think the United Auto Workers union is destroying jobs in America or helping secure better wages for their workers?