Any high-ranking corporate top executive will tell you that negotiating with the unions is no easy matter and if it is not done correctly it causes a rift between management and labor and can disrupt the company for years to come. In this case, it is usually the management that must go, as the union generally stays intact because without labor you cannot run your business.
But how do you negotiate with labor unions? Currently we see at Ford Motor Co. an offer of a pretty decent severance package to some 70,000 employees to take early retirement. Meanwhile Ford Motor Co. has announced last year that it will layoff 300,000 people within the next four years. Currently they are letting go 14,500 people and in doing so that does give the upper hand to Ford Motor Co. in negotiating with the unions and getting employees to take the severance pay packages.
One union boss who was familiar with the plant closings and the layoffs said that Ford Motor Co. was indeed offering them a pretty good package and for many employees it might be wise for them to take it. It is amazing when you can have a union boss state such in a major financial world newspaper. It shows that Ford Motor Co. has indeed done a very good job negotiating with its unions. Please consider this in 2006.
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