The members of the Canadian Auto Workers Union at Ford Canada approved a new collective bargaining agreement by a vote of 82% for, the CAW said late yesterday without revealing how many of its 4,500 members actually turned out. Balloting took place at a series of ratification meetings Saturday and Sunday in Hamilton, Windsor and Brampton, Ontario and saw 100% of office workers, 87% of skilled trades members and 81% of line workers agree to a deal that provided no wage increases and extended the two-tier system to ten years for the life of the contract.
Now for the first time at Ford Canada under a “New Hire Grow-In program” fledgling union workers start at C$20.40, or equal to 60% of the current highest member $34 base rate, and then they only get full compensation after ten years. The Obama Administration, of course, broke the power of the UAW in the U.S. as part of required terms for financing bankruptcy reorganizations at Chrysler and General Motors and thus allowing the UAW to survive. As a result, unionized costs in the U.S. are now lower than in Canada and at some Japanese North American plants. A study from the Center for Spatial Economics said that if the Detroit Three disappeared from Canada, it would lose 600,000 jobs, and close to 5% of GDP. The stark facts were not a strong bargaining position for the CAW, which has been on the defensive since contract talks opened in August.
The new Canadian labor agreement with Ford was the first deal established at the recovering Detroit Three companies in Canada – all of which have received lavish government subsidies from national and local taxpayers in Canada (and the U.S. of course) during the ongoing Great Recession. This is now the pattern agreement at General Motors, whose revised contract post-bankruptcy is being voted on later this week, as well as holdout Fiat owned Chrysler.
“Our members at Ford recognize that in these uncertain economic times, some of the most important elements of a new collective agreement are future investment and improved job security,” said CAW President Ken Lewenza. “This new agreement will ensure that our facilities are well-positioned for a strong future in the North American auto industry.”
Ford of Canada has a national headquarters, three regional offices, two branch offices, three vehicle assembly and engine manufacturing plants and two parts distribution centers. The CAW reached an agreement with Ford on 17 September and General Motors on 30 September 2012. The union has not reached an agreement with Chrysler, but will continue talks with the hope of reaching a new deal this week.
Highlights of the agreement include:
- Employees covered by the agreement receive a $3,000 signing bonus
- Cost-of-living allowances are suspended until 6 June 2016, and are replaced with a $2,000 lump sum payment in the first three years of the agreement
- Long-term care provisions are capped at $800 per month for new participants
- Prescription drug plan updated to reduce costs
- Current pension levels are maintained for all retirees
- Retirement incentives will be offered to certain employee groups to help create opportunities for laid-off employees to return to work
- Increased operational flexibility
