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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.

Ford announces bevy of recalls, 2 of which are recalls on recalls

Ford has announced five separate recalls, affecting 202,000 vehicles built between 2005 and 2014.
It's not been a great couple of weeks for Ford. On October 30, the company announced a 205,000-unit recall, and yesterday, it was revealed that the Ford brand's year-over-year sales were down over 5,000 units while the company itself was down 3,000 units over through October. Now, the company has announced five separate recalls affecting 202,000 vehicles built between 2005 and 2014.

Ford to kick off F-150 campaign during College Football Playoff

The long-awaited inaugural College Football Playoff will feature the nation's best college teams, with the Oregon Ducks taking on the Florida State Seminoles, and Alabama Crimson Tide facing some team from Ohio. On top of that, though, it'll also see the launch of the very first advertising campaign for the 2015 Ford F-150. Viewers from across the country will see a trio of ads featuring the all-aluminum truck, with two half-minute spots and a full 60-second commercial, all voiced by Denis Leary, touting the F-150's feature set and towing capacity, but passing on mentioning the new truck's class-leading fuel economy. That, Automotive News reports, isn't a miscue by Ford. The company simply didn't have enough time between the EPA's fuel economy announcement and the 2014-2015 Bowl Season to prepare a spot. Expect plenty on the F-150's fuel efficiency in future spots. Interestingly, though, AN is reporting future F-150 advertising won't include a Super Bowl appearance. Ford has made the decision to focus its new truck ads on college football rather than during the NFL championship. "From our point of view, there's no bigger stage to debut the F-150 creative than the College Football Playoff," Keith Koeppen, Ford's US marketing communications boss, told AN. "It's so closely aligned with the passions of our customer." It's those passions that are pushing Ford to kick off its ad campaign for a new truck so much earlier. Speaking to AN, Doug Scott, Ford's truck marketing manager, said that the automaker typically doesn't begin ad campaigns until its dealers have at least a fifty-fifty mix of old and new models, but that it's pushing the 2015 F-150's ads to fit with the college football playoffs. While Ford's focus is on the two semifinal playoff games on New Year's Day and the National Championship Game on January 12, the ads will actually air for the first time on New Year's Eve, when the TCU Horned Frogs face off against the Ole Miss Rebels in the Peach Bowl. The three spots will also be shown during other bowl games, as well. Featured Gallery 2015 Ford F-150 2.7L EcoBoost at Davis Dam News Source: Automotive News - sub. req.Image Credit: Ford Marketing/Advertising Ford Truck ncaa