Fmr. Ford CEO Mark Fields on UAW strike vote: Wages don't really matter much if you don't have jobs

Summary:

• Former Ford CEO Mark Fields discusses the likelihood of a UAW strike and the challenges facing both the union and automakers.
• Fields highlights factors contributing to potential strike, including the union's recovery from corruption charges and its new leader's aggressive stance.
• Challenges posed by automakers' propulsion system changes, resulting in higher costs and lower margins, set a contentious tone for negotiations.
• Fields contrasts Fane's negotiation tactics with past practices, emphasizing transparency's potential impact on contract ratification.
• The influence of the current labor climate and recent strikes on UAW negotiations is discussed, along with sector-specific challenges.
• Fields underscores the delicate balance Fane must maintain between wage demands and job preservation, given the union's reliance on member dues.

Former Ford Motor Company president and CEO Mark Fields discusses the potential for a strike in the UAW contract negotiations and the challenges both the union and automakers face.

The Setup for Contentious Negotiations

Former Ford CEO Mark Fields analyzes the factors contributing to the higher probability of a UAW strike. He highlights the reconstituted union's recovery from corruption charges and its new leader's bellicose language against automakers.

Fields notes the challenges faced by automakers in transitioning propulsion systems, leading to higher costs and lower margins, creating a tense atmosphere for negotiations.

New Tactics and Transparency

Fields discusses the differences in UAW leader Sean Fane's negotiation tactics. Fane, a new leader without experience in national negotiations, departs from past practices of the UAW. He employs social media to set high expectations and transparency for union members, potentially leading to difficulties in ratifying the final contract.

Fields highlights the risky game Fane is playing, emphasizing his narrow election victory and the need for leadership in bringing a union back to work after a strike.

Emboldened by Current Labor Climate

Fields addresses how the current labor climate of frequent strikes affects UAW negotiations. He discusses the UPS strike resolution and its impact on the UAW's confidence in achieving a favorable deal.

Fields contrasts the UAW's situation with other industries like UPS and Caterpillar, noting the unique challenges of the automotive sector due to consumer choices and competition.

Jobs vs. Wages

Fields emphasizes the balance UAW leader Fane must strike between wage demands and job preservation. He points out that the union's business model relies on member dues, making job preservation crucial, as wages matter little without employment.

Fields concludes by underlining the critical decisions Fane faces in maintaining the competitiveness of the Detroit three automakers while advocating for union interests.

As negotiations unfold, the focus remains on how Sean Fane's leadership will navigate the complex landscape of the automotive industry and labor demands.