Ford links Canada investment to union concessions

* Ford and CAW reopened labor talks Monday

* Ford sees no more Canada investments without concessions

* Union wants commitments from company

By John McCrank

TORONTO, Oct 27 (Reuters) - Ford Motor Co (F.N) told the Canadian Auto Workers that labor costs must come down if the union wants a share of future investment, which the automaker intends to channel to wherever it gets "the biggest bang for its buck," the head of the CAW said on Tuesday.

The two sides reopened formal contract negotiations a day earlier, and Ford's global manufacturing chief, Joe Hinrichs, laid out the company's position to the union.

"Joe's message to us was that there are no guarantees," said CAW President Ken Lewenza.

Ford is seeking the same cost savings that the union gave to Chrysler [CCMLPC.UL] and General Motors Co [GM.UL] in the spring as those companies struggled to survive. The three-year collective agreements cut about C$19 ($17.75) an hour from labor costs.

The CAW said it offered Ford the same deal as it sealed with GM and Chrysler, but on the condition that Ford guarantees to maintain the current level of its North American manufacturing presence in Canada, which is about 13 percent.

"It's not likely that we're going to get a 13 percent footprint at this point in time," said Lewenza. "In fact he (Hinrichs) made it clear that there are no such guarantees in the automotive industry today."

GM and Chrysler agreed to maintain Canadian production at about 17 and 20 percent, respectively, of their North American footprints, but the guarantees were tied to billions of dollars in government aid money.

Ford is the only one of the Detroit-based automakers that avoided restructuring through bankruptcy proceedings. It was the only automaker that did not ask either the Canadian or U.S. governments for a bailout.

The company has no new vehicles planned for its St. Thomas, Ontario, plant after the large sedans being manufactured there now are phased out in 2011. The plant employs about 1,500 of the company's 7,000 Canadian workers, and without it, Ford's Canadian manufacturing footprint would fall below 10 percent.

Lewenza said the union is still trying to extend the life of the plant, but the union's bargaining team is now largely focused on investment commitments.

"Ford Motor Co. is making decisions not for tomorrow, but for two or three years down the cycle plan, and we want to be part of that," he said. "If you get investment commitments, product follows."

Ford has made recent progress in gaining concessions from its U.S. labor force, and labor costs now run about $16 per hour higher for Ford in Canada than they do in the United States.

The company's other Canadian operations are in Windsor and Oakville, both in Ontario.

A Ford spokeswoman was not immediately available for comment. ($1=$1.07 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)