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Ford worker files for UAW dues refund, stirs right-to-work debate

Let's start with some history: Ford's Dearborn truck plant, part of the company's massive River Rouge complex, was the center of a strike in 1941 that led to Ford signing the first "closed shop" agreement in the industry. The agreement obliged every worker at the plant to be a dues-paying member of the United Auto Workers. In December 2012, however, Michigan Governor Rick Snyder signed legislation making Michigan a right-to-work state, which outlawed closed shops. The new law gave workers the right to opt out of union membership and stop paying dues even if they were still covered by union activities like collective bargaining. For employees at the Dearborn plant, the right-to-work clauses take effect at the end of their current contract in 2015.
As a tool-and-die maker at Ford's Dearborn plant for 16 years, Todd Lemire pays dues to the UAW - about two hours' salary per month. However, he's been unhappy with the UAW's support of the Democratic party, and not wanting to wait until next year to be out of the UAW entirely he invoked his Beck Rights, which state that a non-member of a union does not have to pay dues to support non-core activities, such as political spending. But Lemire wasn't happy that Ford still subtracted the total amount of dues, with the UAW reimbursing the difference, so he filed suit with the National Labor Relations Board, feeling that the workaround violates his rights.
Lemire's case is just a week old, so it could be a while before a resolution. Yet, as September 15, 2015 draws near and the right-to-work laws take full effect for Michigan workers - and others wonder whether it could help revitalize the state's manufacturing base - a case like this adds more fuel to the discussion.

Mustang retakes monthly pony car sales crown from Camaro

Going back to their origins in the Swinging '60s, the Ford Mustang and Chevrolet Camaro have been fierce rivals for fans' hearts and dollars. Historically, the Ford often led in volume, but Chevy took the muscle car top spot in 2009 upon the Camaro's rebirth. However, with the launch of the latest Blue Oval pony car, the tide is turning back in Ford's favor. November was the first full month of sales for the new 2015 Mustang, and according to TheDetroitBureau.com, the model did spectacularly well. The Blue Oval shifted 8,728 of them, up 62 percent from same month last year, with the automaker proclaiming it the model's best November sales since 2006. Conversely, 4,385 units of the Camaro were delivered, down 13.5 percent year-over-year, meaning its sales were roughly half that of the new-generation Mustang. Ford is understandably happy with the results, and product development director Raj Nair even hinted to TDB that another version of the Mustang might be unveiled at January's North American International Auto Show. Rumor has it that the model will be the even more potent Shelby Mustang GT350R. Despite the Mustang's November success, the Camaro outsells it year to day. So far in 2014, Ford has sold 73,124 Mustangs versus 79,669 examples of the Camaro. With December offering the last chance for an overtake, the Bowtie may yet remain king for this year's sales crown. A new Camaro is peeking over the horizon, as well. It's reportedly moving to the Alpha platform used by the Cadillac ATS, and production could start in late 2015. Prototypes are already testing at the Nurburgring, and camouflaged examples have been spotted weirdly being compared to its '80s forefather.

Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.