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23
Jul 2007
‘All eyes on the shadow of the wizard’
Posted by Scott Spielman
at 4:02 PM | Comments
Okay, maybe it’s a stretch to use that song lyric to kick off this blog. There are no real wizards involved; I’ve just had this Rainbow song from 1976 running through my head.
There’s no mistaking, though, that all eyes will be on the Detroit area as contract negotiations kick off between Ford Motor and the United Auto Workers union.
They’ve been called the most important talks of their kind for the industry, and I say they mean just as much to the State of Michigan, as a whole. Even as the state tries to shrug off economic difficulties that have mired its recovery far longer than in any other state, we still are overly dependent on the automotive industry and all of its ancillary suppliers.
As almost anyone can tell you, the picture isn’t exactly bright. Faced with increased competition from overseas, domestic automakers are slashing their workforces and still posting record losses. This time around, Ford plans to try to reduce labor costs—whether through salary cuts or benefit concessions or both—by $21 an hour.
That’s a staggering amount, considering the way every other cost is escalating, but union officials may have little choice other than to strike a deal that protects the long-term prospects of employment for the majority of their workers.
These negotiations often kick off with a certain amount of public good cheer. There’s handshaking, joking and smiling. There’s bound to be plenty of shouting before it’s all said and done and painful decisions done. Who knows, perhaps both sides can work together proactively and come up with a solution that will extend the legacy of Henry Ford.
You don’t really need a wizard for that—just an open mind and an eye to the bigger picture.
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