Ford and the CAW have reached a 4 year collective agreement to Sept 2016. Details from the CAW press conference below.
Under the proposed terms of the agreement, set to last until September, 2016, the CAW will make some concessions; a two-tier wage progression will be extended from 6 years to 10 years (as was rumored), while the cost-of-living adjustement will be jettisoned, with lump sum payments of $2,000 in years 2, 3 and 4 of the agreement, as well as a $3,000 ratification bonus (to be paid within 4 weeks of members ratifying the contract). The COLA adjustment will return briefly in June 2016.
There will be no base wage increase for CAW members, while active members will not see a change in their pension plan. New hires will get a hybrid pension plan similar to that used by Air Canada, that combines elements of both the defined benefit and defined contribution pension plans.
In return, Ford will re-hire the estimated 800 laid off workers from the St. Thomas, Ontario plant, while adding 600 new jobs at their Oakville assembly plant. A third shift will add 230 jobs, while a new vehicle based on an all-new global platform in 2014 will add 300 jobs.
Lewenza will ask GM and Chrysler to accept this agreement as a pattern, and also stated that Toyota and Honda were watching the negotiations closely. As we know, the second half of that statement is a bunch of horse excrement, along with assertions that Korean auto makers are dumping their product on the Canadian market, while denying access to Canadian made vehicles.