Best month ever for the UAW? Or worst? You decide
Depending on how you look at it, April was either a glass half empty or a glass half full for the UAW
Has this been the best month ever for the UAW? Or the worst?
You could make an argument that it's both.
There has been a torrent of automotive investments announced this month by Ford and Fiat Chrysler Automobiles that should give UAW leaders and workers plenty of reasons to celebrate. But the sweetness of those developments are soured by decisions made to build new plants, create jobs and move production to Mexico.
So is UAW President Dennis Williams celebrating or agonizing today? Or both?
Here is a quick review of the good, the bad and the ugly for the UAW in recent days:
Good news:
Investment at Ford's Livonia Transmission Plant: Ford said Tuesday it would invest $1.4 billion to overhaul its Livonia Transmission Plant. The automaker will build high-tech, 10-speed transmission at the plant for its popular F-150 pickups. This will preserve about 500 jobs at the plant. This helps to fulfill commitments Ford made as part of a four-year contract ratified by UAW members last fall.
Investment at Ford's Ohio Assembly Plant: Ford said Tuesday it will invest $200 million so it can build Ford Super Duty pickups at Ohio Assembly in Avon Lake, Ohio. This will help to preserve 150 jobs there. Ford makes most of its Super Duty pickups at a plant in Kentucky but needed additional capacity. This investment also was part of Ford's commitments in its 2015 UAW Contract.
Ram pickup for FCA's Sterling Heights Assembly Plant: Sergio Marchionne said Tuesday the automaker will move production of its Ram 1500 pickups to Sterling Heights Assembly Plant. This is good news for workers who make the Chrysler 200 and have been laid off most of the year and were growing worried about their future as the Chrysler 200 gets phased out.
Jeep Wagoneer for FCA's Warren Truck Plant: This plant will lose the Ram 1500 pickup, which is not really very good news for those workers. Still, the plant will eventually gain the Jeep Wagoneer and Jeep Grand Wagoneer, which FCA plans to sell in the U.S. and globally. And that at least ensures a future for that plant.
New engine line at FCA's Trenton Engine Plant: FCA said Tuesday it will invest $75 million to build a new four-cylinder engine at Trenton Engine. Since this plant supplied engines to the Chrysler 200 and Dodge Dart, which are being phased out, jobs in Trenton were at risk. This investment ensures that 245 workers will keep their jobs when production begins in 2017.
Bad news
Ford to invest $1.6 billion in Mexico: Earlier this month Ford said it plans to build a new plant in Mexico and create 2,800 jobs there. Why? Because Ford says it can no longer make a profit producing small cars in the U.S.
Ford signaled its intention to discontinue production of the Ford Focus at Michigan Assembly in 2018 even before its contract talks with the UAW began last year. Still, the two events seem connected. The UAW essentially pushed for, and won, the elimination of the two-tier wage classification in its contract with the Detroit Three last fall and that will cause labor costs to increase for Ford in the U.S.
Ford says its commitment to U.S. production has not waned. In fact, Ford made a commitment to spend $9 billion at its U.S. plants and add or retain 8,500 jobs over the next four years. But the new Mexico plant is still a big loss for the UAW.
FCA to move Jeep SUV to Toluca Assembly Plant: FCA CEO Sergio Marchionne said Tuesday the automaker will launch the replacement for the Jeep Compass and Patriot at its plant in Toluca, Mexico later this year. The Compass and Patriot are currently made in Belvidere, Illinois.
Marchionne also said Tuesday that the automaker's sweeping plan to restructure its North American production footprint will not result in any lost UAW jobs. But this is still a big deal.
It's also different than FCA's plant in China that builds Jeep SUVs for sale to Chinese consumers or FCA's plant in Brazil that builds the Jeep Renegade for Brazilian consumers.
The plant in Toluca, Mexico will be making Jeeps that will be sold in the U.S., and that deals a major blow to the UAW.
Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.