FACTBOX-Details on recent CAW contract deal with Ford

Wed May 14, 2008 3:27pm EDT
 
[-] Text [+]

May 14 (Reuters) - Canadian Auto Workers members ratified a new contract agreement with Ford (F.N) on May 4, which the union said it will use as a pattern for negotiations with General Motors Corp (GM.N) and Chrysler LLC [CBS.UL]. The deal takes effect on Sept. 16 at midnight. The CAW represents around 8,900 Ford Canada workers.

* Three-year contract expires Sept. 14, 2011.

* No two-tiered wage system.

* Wages to be frozen for life of contract.

* No pension increases or lump sum payments, no cost-of-living increases until the end of 2009.

* Workers to take on more health care costs.

* Employees given C$2,200 ($2,200) "productivity and quality" bonus.

* Workers to give up one week of vacation for a one-time C$3,500 bonus.

* Ford to add production of unspecified fourth vehicle at its Oakville, Ontario, plant sometime during the three-year contract, an industry source told Reuters.

* Company to hire up to 500 new workers to raise production at Oakville, where it builds the Ford Edge and Lincoln MKX crossovers and is set to produce the Ford Flex crossover.

* Ford to outsource work considered "noncore" at Oakville plant.

* CAW agreed to changes aimed at creating 30 more minutes of production per 24 hours at Oakville plant.

* Ford to extend the life of St. Thomas, Ontario, plant by one year to 2011, but has made no further commitments to products at the plant beyond the life of the new contract.

* Ford committed to producing a new engine at its Windsor, Ontario, plant, conditional on financial support from the Canadian and Ontario governments. ($1=$1.00 Canadian) (Reporting by John McCrank; Editing by Peter Galloway)

 
Join the Reuters Consumer Insight Panel and help us get to know you better

Join the Reuters Consumer Insight Panel and help us get to know you better