Thread: Unions
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Old 04-16-2008, 15:12 PM   #37 (permalink)
Shek
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Quote:
Originally Posted by ba1025 View Post
Honestly, I couldn't readily find the data on the other years for free. Ford in it's contracts created future obligations to it's employees who agreed to those non wage benefits in good faith. Ford did not plan well for them and now claims it can't afford them going forward. I can't say either way. Did they make horrible miscalculations and therefore it was poor business planning and if it bankrupts them and Toyota gets to buy them it's market capitalism at work right? Did they pass on what should of been pension investments to shareholders in which case it's fraud in the moral sense of the word.

I would agree the unions need to make some concessions. I also understand the mistrust they have. Do you remember the bonuses Delco execs gave themselves after the unions gave back compensation already promised?
Here's the profit data for Ford. Up and down.

FORTUNE 500 2007: Ford Motor Company
F - Ford Motor - Fortune 500 2006 - CNNMoney
FORTUNE 500: Ford Motor
FORTUNE 500: Ford Motor
FORTUNE 500: Ford Motor
FORTUNE 500: Ford Motor
FORTUNE 500: Ford Motor
FORTUNE 500: Ford Motor

Here's the status of the pension plan for 2002.

Ford pension plan deep in red - Ford Forums - Mustang Forum, Ford Trucks and Cars

It appears that the downturn in the stock market along with some weaker/volatile performance (see above) has made it difficult to make sure that the pension liabilities are fully funded. As of 2002, their cash position could cover the liabilities, but it was a good move to keep it in cash so they could react to emergencies. I have no idea where they stand today.

As far as Delco/Delphi executive pay goes, I don't know enough of the specifics beyond that the bankruptcy court approved the plan to comment smartly on it. On the face of it, it does seem excessive, but without specifics, I can fall on either side.
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