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 wreaked havoc 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 bribe "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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You know, it’s funny. GM and Chrysler had knock-down drag-out fights with the UAW, culminating in day long (if that) strikes. Ford made their deal relatively drama-free. Now they can listen to The Buzzsaw drone on about GM and Chrysler, knowing full well that they’re in the clear.
The question then becomes, did they get enough out of the deal?
Call me crazy, but it seems that Ford took it’s employee’s needs into account while trying to get a better deal for itself. Sometimes it’s how you present an idea that leads others to agree with it. Win-win anyone?
I don’t think this should be a big shock. Buzzy-boy wanted some of the work on Ford’s new V8 line. Ford didn’t want a long, drawn out fight over the two-tier wage system when the CAW already had something similar (if slightly contained in scope). So, Ford gives Buzzy-boy the plant work if his CAW agrees to more flexible work rules, and everyone goes home happy – mostly. But with a union to deal with, that’s about as close as you can get.
Well in Windsor they have the new COA kicking in which replaces many of the jobs like mechanics, janitors, dock workers, etc., that are not tied to the line with outside workers. Basically the same as 2 tier except they hire outside workers and Buzz saves face. This may be settled so far ahead to facilitate Ford hiring the new employees at Oakville.
One of two things has happened. Either Ford capitulated or the CAW got smart enough to realize that 70% of something is better than 100% of nothing.
“Ford has promised to find a replacement for the Crown Vic/Grand Marquis/Towncar combo.”
There is the crime in all of this, yes Ford, find me a full size B-O-F RWD sedan with better crash test ratings, better reliability, better ride quality, truer American sedan drivability, and better longevity for under $30K….chop-chop.
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…….
The Looney is not helping matters. The Ford workers should count their blessings they don’t work for Cry-sler
“$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.
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 up…you 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!