Unionization of Ford Motor Company

In: Business and Management

Submitted By stinkybird16
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Unionization of Ford Motor Company
Human Capital Management 531
February 27,2012 professor: Ricky Owen

Unionization of Ford Motor Company

Ford Motor Company Background
At the beginning of the century, cars were merely toys that only the rich could afford and were very complicated to drive. Henry Ford did not invent the automobile, he created a car that every typical, average American would be able to afford. Henry Ford was able to produce affordable cars because he introduced the idea of the assembly line to manufacturing the cars. The efficiency in which the cars were manufactured allowed Henry Ford to decrease the cost of the Model "T" from $825 to $575 within four years of the cars debut. As a result, Ford's share of the market was 48%. Cars were assembled by skilled men who performed the same task over and over again from piles of parts. The assembly line was so efficient that the time to create a car reduced from twelve and a half hours to six hours. Legal issues and obstacles that Ford could encounter:
Ford Motor Company is an extremely large corporation that must keep, UAW (United Auto Workers), a very large union content. With the collapse of the economy in 2008, many workers and unions have had to compromise with larger companies in order to keep these companies from moving their production outside of the United States. Ford has agreed to "in-source" jobs from Mexico, China, and Japan and will create 12,000 hourly jobs in the United States by 2015. The proposed contract calls for major givebacks on the income and benefits won by workers over decades of struggle. The UAW proposal would eliminate cost-of-living adjustments, cutting overtime pay after eight hours, end two paid holidays, and reduce break time" (Porter, 2009). If the economy has another downturn and Ford is…...

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