Today: H 8 /L 5
Skip Navigation LinksHome > News > Business > Article
Search Business:
Ford and CAW eyeing early deal
By Tony Van Alphen, Special to the Beaver
Business
Apr 30, 2008
The Canadian Auto Workers (CAW) stunned the auto industry Monday by announcing it had reached agreement with Ford Motor Co. on key monetary items for a three-year deal that would freeze wages for current workers, cut one week of vacation pay and trim some retiree benefits.

In a dramatic shift from traditional bargaining at the Big Three automakers, the union revealed it had negotiated the "centrepiece" of a new deal five months earlier than in past contract years and it would set the pattern for subsequent bargaining at General Motors Corp. and Chrysler LLC.

"We do recognize the problems of the companies and the industry and we recognize the times are different and we (have) got to do things different," CAW president Buzz Hargrove said in an interview.

Hargrove said union and company negotiators would now drive for a tentative contract, including resolution of local issues, by the end of the week at a Toronto hotel.

If the two sides reach a deal, about 9,000 workers in Oakville, Windsor and St. Thomas would vote on it within a week.

Ford spokesperson Lauren More cautioned that a tentative contract will depend on successful agreement on local issues specific to each operations.

If workers ratify, the union would press for similar deals at GM and Chrysler, which have taken a harder public position on the need to cut labour costs significantly so they can compete with Japanese-based rivals.

The current contracts in Canada affect more than 30,000 workers and expire in mid-September. Production technicians currently earn about $33.90 an hour while skilled trades people receive about $40.30. They are among the highest paid industrial workers in the country.

Under the Ford deal, the starting wages of new employees would drop to 70 per cent of full rates but they would gradually increase to 100 per cent after three years. In the current contract, new workers start at 85 per cent and move to 100 per cent after three months.

Under terms of the Ford deal here, the union agreed to an immediate freeze in a cost-of-living allowance until September next year and a reduction in vacation pay by 40 hours or one week annually.

In exchange for the freeze, Ford would give workers a $2,300 bonus this fall and a $3,500 special payment the following year for the loss of vacation pay over three years.

-- Torstar News Service

Classifieds