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Why did Henry ford sign a contract with the United Auto Workers Union?
Wiki User
∙ 12y ago
To understand the answer you have to understand what lead to that important decision.
5 January 1914 To avoid the problems GM and the other automakers were facing through sit-down strikes and work slowdowns The Ford Motor Company raised its basic wage from $2.40 for a nine hour day to $5 for an eight hour day. By doing this Ford kept it's workers happy and the production line moving. The other companies were falling behind at the retail floor while Ford was setting sales records.
1936 In Flint, Michigan, United Auto Workers make effective use of the sit-down strike in a General Motors plant. Within a year, General Motors agreed to recognize the United Auto Workers as the bargaining agents for auto workers and not discriminate against union members following a year of sit-down strikes.
Fair Labor Standards Act of 1938 set the minimum wage at 25 cents an hour, Ford was already paying over twice that. When the United Auto Workers tried to organize they made a mistake by only thinking to ask for double. The workers delayed Unionizing until the wage issue was changed to protect their current wage.
1941 The United Auto Workers were recognized by Ford Motor Company. They sign a union-shop agreement- the first in the auto industry. This differed from the agreement of GM in that it was company wide, GM had to settle at each plant.
This was at the beginning of WW2, when Ford was trying to land many government contracts. Although it wasn't a requirement, being under crontract Ford had an advantage in having a stable workforce.
So the real answer as to why Ford signed a contract was for the money.
Wiki User
∙ 12y ago
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