CAW Reaches Tentative Agreement with Ford Canada

September 17, 2012, 5:00 PM EST


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CAW negotiators have reached a four-year tentative agreement with Ford Canada during which time about 600 new jobs will be created at Ford's Canadian operations.

The new agreement also includes cost of living lump sum payments of $2000 in each of 2013, 2014 and 2015, as well as a $3000 bonus on ratification. There are no base wage increases.

COLA wage adjustments are suspended until the final quarter of agreement with the COLA program coming back into effect in June 2016.

There are no changes in pensions for current workers and those who retire during this agreement.

The tentative agreement rejects the concept of a permanent two-tier wage system.

New hires will start at 60 per cent of the current base rate with a 10 year grow in period until reaching the top rate. There is also a restructured pension plan for new hires which is a hybrid defined benefit/defined contribution plan.

CAW President Ken Lewenza said when the 600 new jobs are taken together with restructuring incentives for senior workers it "will allow every laid-off Ford worker today to have either an employment offer or a decent early retirement."

He said the number one priority is jobs and to "stay in the ballpark" for new investment and to create opportunities for the next generation of autoworker.

He stressed the union would be continuing talks with General Motors and Chrysler based on the tentative agreement reached with Ford. The union has extended the deadline indefinitely with General Motors and Chrysler, just as long as progress is being made at the bargaining table. If talks stall, the union could give the company a 24 notice of work stoppage.

Ratification meetings for Ford employees will be held on the weekend with dates and times to be announced.

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