Will A Strike Hit Ford UK?

The thought that labor unrest might take place in these days of overwhelming tough times for the car industry seems unthinkable. After all, if a strike were to occur for, let’s say, at Chrysler or General Motors or even Ford, it could be devastating, particularly if a key plant is shut down.

But in the United Kingdom talk of a strike against Ford is brewing, signifying that the auto union there isn’t too happy with the way that Ford is handling things locally.

At the heart of the dispute is Ford’s plans to cut 850 jobs in the UK while also freezing a previously agreed to pay pact. Union members belonging to Unite the Union, the auto union involved with Ford says that the automaker is planning to fund its cutbacks with pay cuts and has called Ford’s action an act of betrayal.

According to Tony Woodley, Unite joint general secretary: “These proposals are completely unacceptable and a betrayal of Ford’s loyal UK workforce. Ford are asking the workers to take a cut in pay to preserve jobs, but workers are asking themselves if their pay is being cut to pay for friends and colleagues to be thrown onto the dole.”

Unite says that if Ford goes ahead with its planned cuts, the union will be forced to take “industrial action” another term for a strike.

Tony Woodley continued: “Ford has today reached a new low in corporate integrity. While their executives pay themselves handsomely and their European profits alone totalled $1.06 billion in 2007/2008, they are using the challenging global circumstances to cut the jobs and pay of the workers who helped make them these massive profits.

“They must respect this pay deal. If they fail to do so, then we will have no other choice but to consult our members on how they wish to take to defend their jobs and pay.”

In 2008, Ford negotiated a three year contract with its British workforce with the union indicating that they took Ford’s financial plight into consideration when they sat down with Ford management to reach a deal. Union workers overwhelmingly approved the agreement which went into effect late last year.

Unite the Union wonders why Ford has been rejecting assistance from the U.S. Congress to help see it through its difficult times instead of asking workers to fund their restructuring. Both General Motors and Chrysler won federal support late last year while Ford declined to ask for assistance, citing that they had enough funds on hand to see them through the tough times.

Source: Unite the Union