Ford Gets It Done

Ford Motor Group has agreed to a contract with the UAW for four years. This is tremendous for both sides because labor issues are the last thing either side needs. It's a pretty big deal for the UAW:

The four-year contract generally holds the line on wages with no automatic hourly increases for most Ford workers in exchange for a promise to add new car and truck production at some of its more poorly utilized factories in the U.S. The expanded production could lead to the hiring of up to 12,000 union workers through 2015.

The UAW lost a lot of jobs as the automakers struggled. A lot of the cities that are heavily reliant on manufacturing saw a rise in unemployment during these times. The return of jobs to these factories should help bring that down, especially in Michigan. Michigan still is the center of the autoworld. The new deal is a sign of progress:

GM's four-year labor contract, ratified by union members last week, and the Ford accord show the restructured U.S. auto industry is now able to hold the line on labor costs to compete with its foreign rivals while adding thousands of jobs. GM said it will add up to 6,400 union jobs as part of its contract.

It's amazing how lean years have changed the stance of the UAW from being fiercely defensive against paycuts to looking to recoup jobs. It's actually refreshing. The health of the company is just as important as the financial packages that the workers. In fact, it ensures the future of the workers.

Now that the deal is done, Ford seems optimistic about their future. I can't say I am not. They have turned a profit on their own without the stigma of the Federal Government. Now that it has proven its health, it can afford to take lofty goals. I think Ford, of the American companies, is best positioned to take on its Asian competition.