Print

Mail

wiki links

Canada workers, Ford agree on cost-cutting

Ford workers approved a cost-cutting agreement with management that includes shutting down a manufacturing plant in Canada in 2011, a move that will cut 1,500 jobs, the Canadian Auto Workers union said on Sunday.

“No one should mistake workers’ approval as satisfaction with the new agreement,” union president Ken Lewenza said after the agreement passed with 83 percent of the vote.

“Members had faith in the union to negotiate the best agreement possible and protect their interests over the long term, but the problems faced by industry cannot be resolved at the bargaining table,” Lewenza added.

Besides the loss of some 1,500 jobs at the Ford plant in St Thomas, Ontario, which will close in the third quarter of 2011, the deal on Friday includes a reduction in vacation, break times and co-payments on healthcare.

The agreement, which expires in September 2012, includes a commitment by the US automaker to keep at least 10 percent of its North American production in Canada.

No estimates were provided on the savings the cost-cutting agreement will entail.

The deal is the second cost-cutting pact reached between the union and Ford in 18 months.

Although Ford did not accept bailout money from the US government like Chrysler and General Motors (GM) did, the union said Ford followed the pattern set out earlier in the year by its US rivals to cut significant portions of their Canada operations as part of restructuring.

In their deals, GM and Chrysler workers accepted US$16 and US$19-per-hour pay cuts respectively.

Chrysler and GM filed for bankruptcy and received billions of dollars in US government aid. Canada’s government also pumped billions of dollars into the companies as part of packages to keep their auto manufacturing operations afloat.

The St Thomas plant produces the Ford Crown Victoria — a model routinely chosen by US police forces and New York taxis — and the Mercury Grand Marquis.

Besides the loss of some 1,500 jobs at the Ford plant in St Thomas, Ontario, which will close in the third quarter of 2011, the deal on Friday incluldes a reduction in vacation, break times and co-payments on healthcare.

The agreement, which expires in September 2012, includes a commitment by the US automaker to keep at least 10 percent of its North American production in Canada.

No estimates were provided on the savings the cost-cutting agreement will entail.

The deal is the second cost-cutting agreement reached between the union and Ford in 18 months.

Although Ford did not accept bailout money from the US government like Chrysler and General Motors (GM) did, the union said Ford followed the pattern set out earlier in the year by its US rivals to cut significant portions of their Canada operations as part of restructuring.

In their deals, GM and Chrysler workers accepted US$16 and US$19-per-hour pay cuts respectively.
This story has been viewed 574 times.