CAW says Ford Canada wants to reach new labor deal

2009-07-08 04:26:04 -

TORONTO (AP) - Ford has asked the Canadian Auto Workers to match recent concessions reached in labor deals with General Motors Canada and Chrysler Canada so the company can remain competitive, the union said Tuesday.
CAW negotiator Mike Vince said although the union's current contract with Ford doesn't expire until 2011, Ford management outlined why the automaker needs a new contract to remain competitive in its Canadian and U.S operations during a meeting last night.
«To be able to maintain an auto manufacturing presence in Canada, we have to take action now to improve our competitiveness; we cannot wait until 2011 since it may be too late to close the labor cost gap,» said Ford Canada spokeswoman Lauren More.
CAW economist Jim Stanford, who was also at the meeting with Ford executives, said the company is looking for pattern-type bargaining.
«In terms of what we call the master contract, which covers the bigger economic issues, I think they are looking for the same agreement that we have with GM and Chrysler,» Stanford said. «They'll be looking to use that cookie-cutter approach.
CAW president Ken Lewenza said Ford must agree to maintain its current Canadian production footprint if the union is to give the company concessions.
However, Ford has no plans to manufacture vehicles at its St. Thomas, Ontario plant, which employees 1,600 workers, beyond 2011. Lewenza said there is also a chance the plant will shut down once the vehicles it currently manufactures, the Ford Crown Victoria, the Mercury Grand Marquis and the Lincoln Town Car, are taken off the line.
«Without a replacement product the closure is inevitable. At least it gives us some time to lobby for another product, but it's going to be an uphill battle,» he said.
Ford was the only Detroit Three automaker that did not to get any financial aid from the U.S. or Canadian governments to stay afloat and restructure under U.S. court bankruptcy protection. As a condition of billions of dollars in government aid, GM and Chrysler were forced to negotiate new deals with their unions in Canada and the U.S.
After months of bargaining during which the CAW reached agreements with GM, then Chrysler, and was then forced by the federal and Ontario governments to give GM even more concessions, the union agreed to slash labor costs at both companies by cutting benefits.
In addition, Ford Canada's Detroit-based parent won $500 million in savings under a new contract with the United Auto Workers in March. Reports say Ford has asked the UAW to match concessions made to Chrysler and GM as well, although the union refused to confirm or deny this on Tuesday.
Although Ford increased its Canadian sales by 24.6 percent in June compared to a year earlier, gaining the industry's top spot for the first time in decades, the company has said the new labor contracts have left Ford unable to compete.
Vince said CAW leadership will review Ford's submission and will decide whether to reopen negotiations within a week.
Ford Canada employs about 7,000 people at assembly plants in Ontario.