UAW, Ford take a responsible approach to new contract (Op-Ed)
October 10, 2011
By John D. Dingell
From: Detroit Free Press
Here in Michigan, we know jobs are precious things. The national unemployment rate sits grimly at 9%, and in Michigan, it again has climbed above 11%. Working families face uncertainty as they face the prospect of another recession. Amidst the rampant popular talk about the need to create jobs and spur economic growth, the United Auto Workers and Ford have agreed on a responsible, forward-looking labor contract that will make a meaningful contribution to our country’s economic recovery.
Last week, the UAW and Ford announced plans to add 12,000 new jobs in the United States and invest $16 billion in product development and domestic plant upgrades. Ford plans to invest $2.4 billion in its Michigan plants during the next four years. That includes a $555 million investment in Ford’s AutoAlliance International plant at Flat Rock, which will get a second shift to help meet consumer demand for the fast-selling Fusion and the Mustang. The Michigan Assembly Plant also will get a third shift and nearly $300 million in new investment. Ford’s Dearborn Truck Plant will get even more: a $359 million infusion to build the next generation of F-Series trucks. In short, the UAW and Ford have struck a deal that creates jobs right here in Michigan and ensures Ford’s long-term competitiveness, even when measured against foreign, non-union producers. If we have learned one thing in the past five years, it is that our domestic automakers cannot afford to be uncompetitive. This agreement reflects that wisdom and will do wonders to revitalize Michigan.
There is more, though, to this agreement than the numbers show. While it locks in investment, research, and product development commitments, it will also have a ripple effect on the broader economy. Every American automotive vehicle manufacturing job supports another 10 jobs in the economy, according to the Center for Automotive Research. Ford needs parts from auto suppliers, many of which are Michigan companies, to assemble its vehicles. More than 2,600 Michigan businesses depend on Ford as a customer, and Ford spends nearly $16 billion a year here in Michigan.
The UAW-Ford contract has a very human face, too. It will provide an economic boost to communities where Ford’s UAW employees live. If the deal is ratified, each hourly worker will receive as much as $10,000 for the remainder of 2011. Communities almost certainly will see benefits from the $198 million in bonuses and profit-sharing checks that workers will pump into the Michigan economy.
I wholeheartedly support this agreement because it is a responsible approach that protects Ford’s competitiveness while rewarding American auto workers for their role in the company’s turnaround. In the wake of recent restructuring in the U.S. auto industry, we must all remember that job security, job creation, and competitiveness are all intertwined. I hope my friends at the UAW will ratify this agreement and help our country’s and Michigan’s automotive industry stay on a sustainable path to out-compete foreign competitors well into the future. The U.S. Chamber of Commerce has hailed this agreement, saying, “Let’s make this kind of balanced agreement in Detroit a foundation for moving forward bipartisan, job-creating policies in Washington.” I could hardly agree more.
Read this at the Detroit Free Press




