Ford Seeks No-Strike Pledge From UAW, Supports Consolidation of Supplier Network

So far, Ford has survived without the financial support of the U.S. government, unlike its domestic rivals Chrysler and General Motors. But regardless although it has shunned government aid, Ford has still been able to win the same concessions from the UAW and bondholders as Chrysler and GM, piggybacking off its rivals’ negotiations as it tries to remain competitive.

That’s why Ford will ask the UAW for the same no-strike pledge that it made with Chrysler and GM, says Ford CEO Alan Mulally. Speaking to reporters at the National Summit economic forum in Detroit yesterday, Mulally said Ford is currently talking to the UAW about obtaining the pledge. Mulally says the no-strike pledge is “one piece of the conversation we’re having with them.”

“We continue to talk with them on improving our competitiveness,” Mulally said. The UAW has agreed not to strike GM or Chrysler before 2015.

In addition to seeking the no-pledge cause, Ford wants to double the $500 million in savings it won from the union on March 9 to match the savings won by Chrysler and GM.

Mulally also cited Ford’s rejection of federal aid as a reason why the automaker is attracting new customers.

“We have so many more advantages… Ford is in a completely different place,” he said. “People also want to know they are with a company that is viable, that will be here long-term and that is on a positive track.”

It seems now that Mulally’s concern is for the supplier network. He said Ford’s success is crucial on having a healthy supplier network, and that consolidation must occur in order for that network to emerge.

“The supply base and the health of it is the most important thing to the entire industry,” he said. “One of the most important things is to help them get consolidated because we have this overlap. Consolidation is tough, but it’s the right thing to do.”

Source: The Detroit Free Press