1. Both car companies have been trying to set up a fund, run by the UAW, to handle most of the pension and health benefits for the UAW. This would have to be funded with as much as $60 billion from the two companies, but would take the liabilities for these costs off of their balance sheets.
2. But, the UAW may want a level of funding for this pool that is greater than the car companies are willing to give. Or, the UAW may want to fight for a higher number of jobs in the U.S. than GM and Ford feel they can handle. With falling vehicles sales and high costs, getting their North American operations profitable may be impossible no matter what the union gives. • If you were an employer who was considering hiring a former Ford or General Motors employee, what unique concerns might you have relative to hiring someone with similar background from a different company such as Toyota or BMW? • Toyota has a special culture, deep-rooted values, and respect for their workforce. Toyota’s tradition is to not lay off employees during