UPDATE 1-Canadian auto union backs Ford Canada labor deal
TORONTO, May 4 (Reuters) - The Canadian Auto Workers union has voted in favor of a three-year labor agreement with Ford Canada (F.N), paving the way for similar deals with other major car makers, the union said on Sunday.
Union President Buzz Hargrove said he was "elated and relieved" after 78 percent of union members voted for the agreement.
"We are going to talk to General Motors and Chrysler and we are going to offer them the same deal," he told Reuters. "There's no reason why they wouldn't accept it."
The deal, which includes a wage freeze and new pay scales for new hires, was sealed an unprecedented five months before the union's current contract with Ford expires, avoiding the deadlines and tense brinkmanship that traditionally accompany auto sector contract negotiations.
Hargrove said that reflected the "overwhelming challenges" in the North American auto sector, which faces tough foreign competition, a U.S. market collapse, high gas prices and other problems. "Our members are aware of that," he said.
Union officials, who recommended the deal on Friday, have said it will save Ford hundreds of millions of dollars.
Workers will face a wage freeze for the duration of the contract, higher health costs, and one week less paid vacation per year, while cost of living increases will be suspended for five quarters.
But they will receive a C$2,200 ($2,160) "productivity and quality" bonus and a one-off C$3,500 bonus in January to compensate for the lower vacation time.
In addition, Ford Canada's assembly plant in St. Thomas, Ontario, will remain open until 2011, instead of 2010 as originally scheduled.
The union has said it plans talks with General Motors GM.N on Monday and then with Chrysler LLC [CBS.UL] on Tuesday "with the intention of adapting the pattern agreement achieved at Ford to each company." ($=$1.02 Canadian) (Editing by Ian Geoghegan)
