Canadian Auto Workers Union Reaches Deal With Ford

Canadian Auto Workers Union: Ford Canada To Close 1 Ontario Plant, Add 2 Vehicles To Another

(AP)  TORONTO (AP) - The Canadian Auto Workers union reached a deal with Ford Canada that will lower the company's operating costs and guarantee two new vehicles for the automaker's major Canadian assembly plant, the head of the union said Friday.

Ken Lewenza said the deal will also see Ford proceed with plans announced earlier this year to close one of its Ontario plants employing 1,600 workers, which makes large-sized cars that are no longer in demand.

"During the negotiations, Ford threatened that if we didn't come to an agreement, the company would begin shifting investment out of Canada," said Lewenza. "In today's globalized economy where companies attempt to bypass community commitments, it's crucial that we don't allow this to happen."

Under the agreement, Ford's engine plant near Windsor, Ontario, will also get additional work over the life of the new contract that will expire in 2012.

The union has agreed to give the automaker the same concessions it gave the Canadian subsidiaries of General Motors and Chrysler in negotiations earlier this year, including cuts to benefits and time off.

The American and Canadian unions representing GM and Chrysler were forced to grant concessions as a condition set out by the U.S., Canadian and Ontario governments to qualify for tens of billions of dollars in government bailout money to keep the insolvent companies alive.

Ford did not need government loans because its finances were in better shape than its rivals. But the Detroit-based parent company and its Canadian unit demanded the same concessions to keep an even playing field with the others in an increasingly competitive North American car market.

In the past two years, the Big Three automakers have cuts tens of thousands of jobs and closed assembly plants across North America to cope with a slump in business and loss of market share to Toyota, Honda and other overseas rivals.

In Canada, GM has already closed a pickup truck plant and will shut down a transmission plant early nest year. Chrysler and Ford have also reduced their work forces and streamlined operations.

Lewenza said Ford has agreed to keep 10 percent of its total North American manufacturing in Canada, which is down slightly from the current level of 13 percent.

Ford employees still need to ratify the agreement.