Ford Cuts Deal With CAW

Edward Niedermeyer
by Edward Niedermeyer
ford cuts deal with caw

With five months left on their current contract, Ford and the Canadian Auto Workers Union (CAW) have agreed on a new deal. Union workers will see a wage freeze and reduction in vacation time, in exchange for holding off the "two tier" wage system which have [s]wreaked havoc[/s] cut U.S. labor costs.Yes, well, The Globe and Mail reports that the new contract calls for new employees to receive "70 per cent of regular base wages in the first three years of work." So what does Pierre Hardhat get in exchange for the cost of living freeze and stealth two-tier wage structure? Cash money, of course. Ford will pay each CAW worker a $2,200 [s]bribe[/s] "productivity and quality bonus" when the contract is ratified, and $3,500 reimbursement for giving-up 40 hours of vacation time in January '08. The St. Thomas plant will stay open under the agreement; Ford has promised to find a replacement for the Crown Vic/Grand Marquis/Towncar combo. Still on the table: health and safety provisions and clauses covering skilled trades workers. With some of Ford's most important products coming out of Canada (Edge/MKX and soon, the Flex), look for a final contract to be settled sooner, rather than later.

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  • MikeInCanada MikeInCanada on Apr 29, 2008
    Buzz got the best deal he could from Ford - that's for sure. I think that the real end game for the CAW is to buy time, in hopes that the government changes back to their patron Liberal party. If they can just keep things going until then.......

  • GS650G GS650G on Apr 29, 2008

    The Looney is not helping matters. The Ford workers should count their blessings they don't work for Cry-sler

  • on Apr 29, 2008

    "$3,500 reimbursement for giving-up 40 hours of vacation time in January '08." I hope that's not a one for one exchange. If they make $3,500 CDN per week then I don't see how Ford (or any other car manufacturer) can afford to build cars in Canada. That's a heck of a lot more than I make as an engineer, and even more than my Bro-in-law makes as an engineer with Delphi. And, he's very worried about losing his job. Kinda' makes you wonder why you spent all the time and money getting an engineering degree.

  • MikeInCanada MikeInCanada on Apr 29, 2008

    If you make a Macro type calculation $3500/week = salary plus benefits - it might be pretty close.... It correct, it certainly highlights just how high their cost basis is. And for Lumbergh21 - tell you brother an Engineering degree will forever be an personal asset. I've never been told "You screwed got an EE." More then I can say for my liberal arts friends. Bonus Engineer/Technician/Mechanic Benefit - Women over 30 love guys that can fix stuff around the house. On our first date I programed my wife's VCR while I was waiting for her to get ready. The date went 'fair' - according to her, however every time she saw the correct time and not 12:00 (flashing incessantly) she thought of me. I was in like FLINT!