CAW members ratified an agreement with Ford with 82 percent in favor of the four-year labor deal that brings an overhaul to the automaker’s pension plan for assembly plant workers, and extends the new hire wage climb process.
GM workers will vote on their contract later this week, while Chrysler remains the sole automaker to still be negotiating with the CAW.
CAW President Ken Lewenza told the Windsor Star that a deal with Chrysler “…should not take more than five or six days…” to be hammered out. As of Monday morning, there was no indication of an imminent agreement. The rumormill suggests that Chrysler is unhappy with the signing bonuses and COLA payments that are a part of the “pattern agreement” with Ford, with the Star saying
Chrysler informed the CAW Friday that the Ford pattern was too expensive. It is particularly opposed to the reinstatement of the cost of living allowance in the last quarter of the four-year deal, which expires September 2016.
The company doesn’t like COLA because it is a fixed cost that kicks in regardless of profitability, and compounds and adds to wage rates over time.
While Chrysler CEO Sergio Marchionne has previously discussed moving production out of Canada if the CAW doesn’t agree to a UAW-style two-tier wage system, doing so, according to the article, would cost about $2 billion.