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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.

The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

2022 Ford Maverick gets a surprising amount of attention

People notice the 2022 Ford Maverick. You could chalk it up to metro Detroit being a company town, but that’s too easy. The Maverick, despite its modest size, has presence. I expected the truck to draw curiosity. Aesthetically, the MaverickÂ’s closest rival, the 2022 Hyundai Santa Cruz, is far more eye-catching with a flashy grille and curves and creases front to back. The MaverickÂ’s squared-off truck demeanor makes it an understated attention-getter, and it does have some design flourishes, especially up front with the blocky headlights that Tetris with the grille. ItÂ’s not just the looks. The sub-$20K MSRP offers real value and is an articulation of FordÂ’s strategy to pivot from cars to similarly sized offerings. This is better than a Ford Focus, and it makes sense why Ford took such a big risk revamping its lineup. And the hybrid version gets up to 42 mpg. Ford sold 4,140 Mavericks in October, outpacing the Santa CruzÂ’s still-healthy tally of 1,848 units. Ford says the trucks were moving off dealer lots in an average of five days, which is a brisk pace. The Maverick is also bringing in young buyers, with a quarter of its sales to people 18 to 35 years old.  While the sales figures are interesting, the Maverick starts about $4,000 less than the Santa Cruz, and Ford sells more vehicles than Hyundai in the United States, so thatÂ’s just part of the equation. Ford and Hyundai will define success for their small trucks in different ways. TheyÂ’re both attention-getters, but the Maverick surprised me with its star power. It will be interesting to see if this segment has staying power for Ford, Hyundai and perhaps others. Other news and notes The North American Car, Truck and Utility of the Year Award finalists were announced this week at the Los Angeles Auto Show, and the Maverick and Santa Cruz both made the cut in the truck category, where they were joined by the Rivian R1T. The Honda Civic, Lucid Air and Volkswagen Golf GTI/R  will vie for top honors in the car segment. The Ford Bronco, Hyundai Ioniq 5 and Genesis GV70 make up the SUV field. Winners will be announced in early January. The finalists were culled from a field of 23 semifinalists. Full disclosure: IÂ’m a NACTOY juror.  HereÂ’s an odd one: Famed designer Marcello Gandini is disavowing the rebirth of the Lamborghini Countach. Lambo essentially restyled the Sian with a modern interpretation of the CountachÂ’s design cues.