UAW Leaders at Ford Overplayed Hand

While alliances between unions and management are hardly unique when it comes to seeking favors in Washington and enabling companies to survive, workers at Ford apparently decided they were tired of giving, even though the package they were offered included long-term job security.

"The ratification process proves once again that the membership is the highest authority in our union and we are respectful of the final outcome," said Gettelfinger and UAW Vice President Bob King, in a prepared statement.

"We recognize that the modifications negotiated with Ford in February 2009 and ratified by our membership were critical in helping our UAW Chrysler and General Motors negotiators shape the agreements at those companies prior to them filing for bankruptcy," the leaders said. "Our UAW Ford members can also be proud of their contributions that have positioned Ford to be a strong competitor in a tough market."

The union will not return to the bargaining table, but union leaders will "continue to work with Ford to insure they maintain the highest ratings in quality and productivity and insure that they remain competitive," Gettelfinger and King said.

During the Ford earnings conference call Monday morning, CEO Alan Mulally repeatedly declined to comment specifically on the union's impending announcement that the contract modifications would be defeated. However, Mulally noted, "We are absolutely committed with the UAW and our employees to improving our competitiveness" and said that: "A soon as we get through the near term, we will go back to work to figure out how we can improve our competitiveness together."