The Ford Motor Company

In 1903, the start of the Ford Motor Company was by Henry Ford. The company has established itself as the largest automotive makers in today’s world and is well-known for making cars, trucks, and financing vehicles. The company has about 78 plants worldwide; the company employs about 166,000 from around the country and 41,000 of (UAW) within the United States. Ford announced a new four-year labor contract with the United Automobile Workers union in October 2011. The company has agreed to add 12,000 jobs and invest $6.2 billion in the United States plants. The numbers included 6,250 jobs and $2.4 billion in investment that it had announced (New York Times, 2011).

Today’s current recession has forced many workers and unions to take reductions to avoid Ford and other companies from outsourcing their production. Signing a new contract with the UAW to hire the 12,000 new jobs within the United States, this could put them in a possible legal issue if the economy keeps going downhill causing the company to reduce its workforce. The company has cut their risk for possibly strikes by the union may still a major risk in approving big investments in both employment and operations within the United States. If Ford’s financing problems resurface, they could find themselves fighting a legal battle with the union during their workers could be on strike.

If the company were put in position to face an option to layoff many of its employees in order for them to stay above water, Ford would face legal issues from the union. If company discusses this option with the UAW and to remove some employees, they must lay off employees with carefully laid out guidelines. They could face a class action lawsuit if they were to lay off employees and cannot show just cause or if it appears that any discrimination took place during layoffs. For example: older employees versus younger employees, men versus women. There could also be legal issues if any prejudice is shown to one group of people over another.

To elude any type of litigation, Ford must create guidelines for any talks entered with the UAW. The risk of a breach in the contract between Ford and UAW must be addressed and policies in place. The negotiations between Ford and the union must contain a gesture of good faith on both parties. Ford must establish legal