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Industry Report: Big Three Labor Talks

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Khatir Soltani

Biggest Problem Cited as Declining Sales and Imported Competition

Contract negotiations between the Big Three and the United Auto Workers are rapidly coming to the point where both sides have to lay their cards on the table.

The talks officially opened in mid-July and typically, four-fifths of the agreement was probably already hammered out long before, but the nitty-gritty details still need to be worked out before the Sept. 14 deadline. There have been rumors that agreements may be reached before the deadline, but nothing was announced as of Monday, Sept. 8.


Ford Contract Negotiations with the United Auto Workers began July 18, 2003, as Ford Vice President Labor Affairs Dennis Cirbes, right, welcomes United Autoworkers Vice President Gerald Bantom, left, and President Ron Gettelfinger, second from left, to the bargaining table during the ceremonial handshake. (Photo: Ford Motor Company)

The major issues appear to be the restructuring agendas of Ford Motor Co. and DaimlerChrysler to slash costs by shedding jobs and plant closings; General Motors Corp.'s intentions to close additional plants to close additional plants; and how to address rising health care costs. Even the issue of elective abortions has been raised by the union, which sparked an outcry from pro-life groups and some UAW members who have called Ron Gettelfinger, the new UAW president, and even staged a small protest outside of the union's headquarters in Detroit.

The biggest surprise in the contract negotiations would be if they did end early, said Mike Jackson, analyst with CSM Worldwide Inc. of Northville, Mich.

Michael Whitty, a business/labor professor at the University of Detroit-Mercy, noted that any big announcements might come on Sept. 13, when the UAW and other unions are holding a massive labor festival at the Ford Field football stadium in Detroit. The AFL-CIO cancelled its traditional Labor Day Parade in Detroit, due to an extremely low turnout of parade watchers over the past several years, and opted for the festival instead.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada