By on September 25, 2012

With negotiations between the CAW moving as quick as a French bureaucrat, Ford is offering eligible workers a new car and a $50,000 buyout as an early retirement gift, while Chrysler is offering the CAW nothing in the way of new jobs.

Speaking to the Canadian Press, a Ford spokeswoman said that

“We will be offering certain retirement-eligible employees an incentive to retire from the workforce to allow our employees on layoff opportunities to return to work,”

Reports say that the 1,000 eligible employees will be offered $50,000 and a voucher for a new vehicle. The incentives come as Ford tries to make room to re-hire workers that were laid off when the St. Thomas, Ontario plant closed one year ago.

Meanwhile, the CAW will apparently not ask Chrysler for any new jobs as part of their labor agreement, quashing rumors that they would push for a third-shift at the Brampton assembly plant that builds their rear-drive LX cars. Chrysler is also unhappy with the re-reinstatement of the cost of living adjustment in Q4 2016, the final quarter of the labor agreement.

 

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21 Comments on “CAW Update: Ford Offering $50,000 Buyouts, No New Jobs At Chrysler...”


  • avatar
    VelocityRed3

    So 50,000 & new Ford, plus (I assume) whatever normal vested retirement that they are currently in? Where do I sign up ;-)

    • 0 avatar
      danio3834

      For someone ready to retire anyway (most of the Canadian Ford workers I know are in that range) that is definitely a deal that would be hard to pass up.

      Of course the 50k is really 35k after taxes and then you’d have to pay another 10k on the 30k car voucher, but still, it’s a gift!

      • 0 avatar
        Chicago Dude

        I’m not sure about Canada, but in the USA Ford could structure it such that the $50,000 goes to the worker as a bonus addition to their 401k retirement account, in which case it is completely tax-free until they withdraw the money, which they can do according to their own needs and tax reduction strategy. It would make perfect sense – the worker is going to retire the day after receiving the money…

      • 0 avatar
        mikey

        In Canada you have a once in a lifetime chance to put around 45K buy ot into an RRSP. You can’t deduct it,but it doesn’t count as taxable income. To use my accountants words. “its a wash”

        Any cash over, and above that you have to claim as income. However, if you have room in your RRSP you can tranfer it to a regular RRSP.

        Everyyhing that you take out of an RRSP is taxed.

        The car voucher will taxed at about 30 percent at source.

        Everybody has a different situation. If your ready to retire, and sitting on the fence,it works great.

        On the down side. The company has just sold a job for $50K and the cost of the vehicle.

      • 0 avatar
        Chicago Dude

        “Everyyhing that you take out of an RRSP is taxed.”

        Everything you take out of a 401k retirement account in the USA is taxed as well – but you don’t pay the tax until you take the money out. And (most importantly), you pay a tax rate that is based upon the amount of income you have in the year you take the money out of the retirement account. Getting an extra $50,000 near the end of a year in which you have already worked full-time will almost certainly put you into a higher tax bracket – costing you a lot of money in extra taxes. You are best taking the money out when you really need it – presumably a time when you don’t already have a lot of other income – you might even qualify as one of the 47% Mitt Romney complained about.

      • 0 avatar
        28-Cars-Later

        Pretty sad when 47% drag down the rest of us. I’d say something to the effect of if this figured was halved we wouldn’t need to be taxed so much blah blah blah, but the truth is we’d still be taxed to death, just in a much richer country.

      • 0 avatar
        golden2husky

        …. you might even qualify as one of the 47% Mitt Romney complained about….

        Maybe if Mitt Romney (and Obama for that matter) paid more than 15% in tax, like those above 47% and below 98%, we would all be in a better place. It’s hard to bitch about the working class poor when the fat cats hop into their tax subsidized 7 series and drive off into the sunset. Maybe if everybody paid their fair share our country would be a little less divided…

        mikey…what is an RRSP?

      • 0 avatar
        28-Cars-Later

        If we lived in some kind of ultra-capitalist society out of science fiction where starving undesirables lived in sewers, my heart would probably bleed for the ‘working poor’ and whatnot.

        Trouble is we don’t, and my heart is cauterized.

        Eliminate “Jus soli”, country’s full. Future Americans will be bred by current ones, new emigrants can only get visas. Google “Jus soli” if you don’t know what this is.

        You immediately lose the right to vote for one year or election cycle if you’re on the dole of any kind.

        Tariff Chinese made goods @ 500% and use the funds to subsidize ZERO taxes for American firms who start up manufacturing.

        Flat tax, everyone pays, no exception. Phase out SS, the federal EPA, TSA, Dept of Education, all medicaid, food stamps, section 8, immediately eliminate SSI, and repeal the entire healthcare law, but keep unemployment for people who actually work and lose their job, and medicare for older folks. No free passes. Don’t like it? Death or exile.

        Banksters printing money out of thin air is equally wrong, and the guillotine is in order. Put the executions it on Fox News.

        We have turned into a nation of sissies. Our grandparents fought a WORLD WAR and brought about a NUCLEAR AGE, but our main concern is our EBT to buy chips to eat as we watch American Idol, while Rome burns.

        We are effectively in 475 AD, I’m not looking forward to barbarian hordes in my later years so let’s get our crap together people.

        http://en.wikipedia.org/wiki/Decline_of_the_Roman_Empire

      • 0 avatar
        Chicago Dude

        It was a mistake to bring up the 47% comment, but, well…

        The overwhelming majority of that 47% pay no taxes because Democrats and Republicans decided, together, in a bipartisan manner, that they should not pay taxes. And further, of the top ten states which have the highest percentage of people not paying taxes, all but Florida are a lock for Romney.

        It was a dumb comment for him to make; one of many dumb comments he has made recently. He is rapidly approaching the status of the Republican version of Joe Biden at precisely the time his campaign needs to running at its best. It’s not a surprise that many Republicans have started sniping at him – they’re angry. Obama was beatable. It’s going to be extremely difficult to do so now.

      • 0 avatar
        28-Cars-Later

        I don’t think its ever a bad idea to speak your mind, just be mindful of those who may disagree. While I cannot disagree Romney prob wasn’t the best man for the task, his sin is speaking too much truth. Successful politicians know the truth hurts as many citizens prefer to live their lives out in a daze… just look the prescription drug abuse and illicit drug use figures.

        True or not, how would you like the implication you’re a leach from a man who needs your vote? How much more do you like it when his opponent lights you up with a smile and a nice line of vague BS as he steps into the last escape pod of Spaceball One as the ship is destroying around you?

        My burning question to candidate Romney is as president will you allow (or command) Detroit to build real cars again? Daeworolet and the prospect of three cylinder engines isn’t doing it for me.

      • 0 avatar
        danio3834

        @28 cars
        I can actually agree with you on many of your points except 1 very important one. Jus soli. Not specifically whether it is right or wrong to allow citizenship simply because one is natural born, but the idea of “country’s full”.

        This mentality is a huge factor in the stagnating economy of the US. Think about the factors that led to the industrial revolution and the creation of the American Dream for a moment.

        It was the fact that the Wild West was the land of opportuniy attracting millions of immigrants. Those immigrants needed housing, food, other consumables and luxury items. This demand drove the economy and the free market allowed business to fulfill the demand.

        There seems to be this prevailing idea that there are only so many jobs and once their filled, there wil be no more. Only if you shut and lock the doors will this be true.

      • 0 avatar

        If the $50k goes into the retirement account, and they get their taxable car, the tax is normally not payable until well into the next year. So they can then withdraw the tax due on the car from the retirement account, where it is taxed at a lower bracket. Not so bad.

        D

    • 0 avatar
      don1967

      @28cars, you had me at every point, except for the implication that Romney should “command” Detroit to do anything.

      The best of intentions invariably go wrong when democratically-elected people develop the mistaken impression that they are entitled to command others by virtue of the democratic authority bestowed upon them.

      Romney should give Detroit every possible freedom, including enough rope to hang itself, without bias or interference.

  • avatar
    danio3834

    They may not need to ask. If demand for the LX cars keeps its current upward pace, production may be added all on its own.

  • avatar
    86SN2001

    A lousy car and enough money to make it MAYBE one year?

    What an insult.

    • 0 avatar
      mikey

      @86SN2001…With 30 plus years in, you get 50K, a car…and 40K pension. I’d hardly call that an insult.

    • 0 avatar
      danio3834

      As opposed to retiring in the near future without an extra 50k and a new car?

    • 0 avatar
      Synchromesh

      I this this was a sarcastic comment.

      Either way most companies will just give you a whatever you earned on your pension plan plus a nice kick out the door. So a lousy car + cash is a much better deal than most other people will get when they retire.

    • 0 avatar
      gslippy

      I’m no union fan, but without it, they’d get the deal I received when I was laid off in 2003 (salaried engineer): 2 weeks’ severance plus 2 weeks’ unused vacation pay.

      I was sitting pretty for a whole month.

      In other jobs, you just get whacked.

      So I agree with mikey – it’s not a bad deal.

  • avatar

    I agree with “Mikey” as a recent retiree here in Canada but not in the Auto sector, it is a very good “Deal”

  • avatar

    In Canada a RRSP is a registered Retirement Savings Plan, it allows you to save for retirement without Tax, there are other parts of it too like what I am on now called a RIF I have to take so much money out of my retirement each month once I turn 71, for more info do a search on goggle under RRSP Canada.


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