CAW Reaches Tentative Agreement With Ford, Details Announced

Derek Kreindler
by Derek Kreindler
caw reaches tentative agreement with ford details announced

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.

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  • Art  Vandelay Art Vandelay on Sep 18, 2012

    Not really a union fan in general, but if the transplants peg their raises to what the Unions do and the unions go away, then would they continue to get raises? If not, would they continue to be anti union. I have warmed up somewhat to unions in watching how my brothe in law is fairing in the American Airlines bankruptcy. They definitely need some reform and a healthy dose of reality in some cases, but we are better with them than without as a nation I think. I do not want to do my shopping at the company store thank you.

  • Oldyak Oldyak on Sep 18, 2012

    unless i`m mistaken,if you are non union you can`t demand can ask! Yea lets walk in the bosses office and demand a raise! Unions are dead and so goes collective or non collective bargaining! Companies have the upper hand and will use it to their advantage every time. Until they feel comfortable with the profit margin the associates wont get shit! All you Union haters wake up!!!

    • See 2 previous
    • Volts On Fire Volts On Fire on Sep 18, 2012

      @bikegoesbaa Not everyone is competent at their job or confident in their abilities. For these downtrodden slops, we apparently need unions to offer them a safety blanket.

  • El scotto El scotto on Sep 18, 2012

    I used to be in a TRADE union. We worked with the site supervisor to get work done, hit production schedules, cooperate with other unions, and work safe. Responsibility fell on the worker to get the job done with full understanding if you couldn't keep up; you were gone. What did we bring to the employer? Classroom training and documented on the job experience. Not everyone can walk high iron or rig a lift safely. I think part of the anti-union hate is because people have been brainwashed to "go to college, get a good job with a big company" and their life resembles "Office Space" more than they will ever admit. Get my hands dirty?; I went to college,I work in a cubicle, such things are beneath me. I have days I really miss working outside.

  • Nick Nick on Sep 18, 2012

    Ok Ford, if you are listening...I drive past this plant whenever I visit my parents. It is plainly evident where you removed the letters 'Home of the Windstar/Freestar'. You can even see it in this picture. It looks like crap, can you really not paint over it?

    • Tresmonos Tresmonos on Sep 18, 2012

      that is based on a plant budget, not a corporate one. You may see it freshen up since they just knocked down the old paint shop before it turned into a complete eyesore.