Communication, clear expectations and consistency are the keys to managing and maintaining strong relationships. We manage our relationships with employees, suppliers, dealers and society through a range of communication forums and by setting strong codes for acceptable behavior.
Employees
Approximately 208,000 of our hourly and salaried employees worldwide are represented by labor unions, including substantially all of our hourly employees in our automotive operations in the United States. Most hourly employees and many nonmanagement salaried employees of our subsidiaries outside of the United States also are represented by unions. We work closely with these unions to develop agreements and governance plans through a collective bargaining process. Policy and procedures involving information, consultation and negotiations with employees over changes in the reporting organization's operations (e.g., reorganization, plant shutdown, employee transfers and reductions) are negotiated with the appropriate union. In addition, joint labor-management committees are set up at each plant to give employees an opportunity to influence working conditions and practices.
Most of our salaried employees are not covered by union agreements. We have a strong Code of Conduct and comprehensive Policy Letters and Directives covering topics, including diversity, relevant to our employees. We are updating our processes and governance in 2007. We also practice regular two-way communication with all employees through weekly interactive webcasts, surveys and informal communications.
Dealers
We manage our relationships with dealers through Dealer Councils. Each brand has its own Dealer Council that provides a forum for dealers to voice their concerns, their needs and ways in which we could work more productively together. Dealer advisory committees also provide input into future product offerings. Through these various methods of interaction, Ford management has the opportunity to meet with, and hear from, the majority of the dealers in their respective franchises. The feedback gathered through these interactions has helped us develop various programs, change policies and enhance processes to improve customer handling and other significant elements of the dealers' business.
Suppliers
We manage our relationships with suppliers through several forums and codes. Our recently implemented Aligned Business Framework agreements with suppliers are helping ensure better communication, better transparency on costs and volume data, and better long-term quality and price control. In addition, we have a Ford Supplier Sustainability Forum that improves communication and collaboration on sustainability issues. Finally, under our Global Terms and Conditions, all of our suppliers are prohibited from using forced labor or child labor or engaging in physically abusive disciplinary practices. In addition, all of our suppliers are encouraged to adopt and enforce a code of practice similar to our Code of Basic Working Conditions and to have their subcontractors do so as well.
Society
Our relationships with "society" include communications with nongovernmental organizations, our government relations activities, our advertising practices and our university partnerships. Please see our Products and Customers section for more information on our advertising practices and our Accountability section for information about engagement with other societal stakeholders. Our engagement in climate change public policy is discussed in the Climate Change section, and our health care policy is discussed in the Financial Health section.
