Topic: CAW & Ford Reach 4 year Deal

[rrocket]

I'm guessing Chrysler might not ratify...we'll see!!

Ford and the CAW have reached a 4 year collective agreement to Sept 2016. Details from the CAW press conference below.

Under the proposed terms of the agreement, set to last until September, 2016, the CAW will make some concessions; a two-tier wage progression will be extended from 6 years to 10 years (as was rumored), while the cost-of-living adjustement will be jettisoned, with lump sum payments of $2,000 in years 2, 3 and 4 of the agreement, as well as a $3,000 ratification bonus (to be paid within 4 weeks of members ratifying the contract). The COLA adjustment will return briefly in June 2016.

There will be no base wage increase for CAW members, while active members will not see a change in their pension plan. New hires will get a hybrid pension plan similar to that used by Air Canada, that combines elements of both the defined benefit and defined contribution pension plans.

In return, Ford will re-hire the estimated 800 laid off workers from the St. Thomas, Ontario plant, while adding 600 new jobs at their Oakville assembly plant. A third shift will add 230 jobs, while a new vehicle based on an all-new global platform in 2014 will add 300 jobs.

Lewenza will ask GM and Chrysler to accept this agreement as a pattern, and also stated that Toyota and Honda were watching the negotiations closely. As we know, the second half of that statement is a bunch of horse excrement, along with assertions that Korean auto makers are dumping their product on the Canadian market, while denying access to Canadian made vehicles.

[Scarecrow]

This is an excellent summary of the CAW-Ford deal reached yesterday.

Unfortunately what's noticeably absent from the deal are any firm commitments to future product mandates and investments in Ford's Canadian manufacturing plants, namely the Windsor and Essex engine plants.  Even the new global platform slated for Oakville in 2014 is contingent on federal and provincial incentive monies.

By comparison take a look at the mandate, investment and job commitments the UAW extracted from Ford last year.  Wow!

It looks to me like the CAW has been too focused on winning the battle...no permanent two-tier wage system, no profit sharing, et cetera...but is going to lose the war that is long-term production and employment.  Tragic.

[Scarecrow]

Hmm, well it looks like Ford's commitment to a third shift and an all-new global platform in Oakville are not new at all.  In fact they date back to the previous CAW negotiations in October 2009.

Check out this excerpt from a Globe & Mail article last summer (http://www.theglobeandmail.com/globe-investor/ford-seeks-government-aid-to-retool-ontario-plant/article586772/):

"Ford agreed in contract talks with the Canadian Auto Workers union in 2009 to allocate a new generation of products to the Oakville plant based on a new global vehicle platform.  The company also agreed to add a third shift of workers to the Oakville plant when market conditions permit, but the slow sales of the Flex and MKT have so far kept Ford from doing that."

The CAW's own letter to members from Oct 2009 corroborates the article (http://www.caw.ca/assets/pdf/october_30_09_footprint.pdf):

"For the Oakville assembly plant, Ford committed to allocating a new global platform to the Oakville flex plant, which will produce at least two new-generation vehicles in the next product cycle."

[Rupert]

Are not the bonusses...$3000/$2000/$2000/$2000 wage increases then. More than cost of living raises maybe.

[tenpenny]

Are not the bonusses...$3000/$2000/$2000/$2000 wage increases then. More than cost of living raises maybe.

Bonuses are not wage increases.  Generally, employee life insurance and similar items are based on salary, so it's important to pay out 'bonuses', not wage increases, because benefits won't increase based on bonuses.

[Rupert]

But $3000 signing bunus and $2000 for each of the next three years is just the same thing surely....and then another contract bout thereafter. Whats the big diff other than semantics.

[2latecrew]

But $3000 signing bunus and $2000 for each of the next three years is just the same thing surely....and then another contract bout thereafter. Whats the big diff other than semantics.

There is a difference but its not a big one.

A salary increase with a % cost of living increase benefits would including compounding. Bonuses do not. Fixed bonuses could result in any number of results. More than cost of living, the same or less.

If it were a % increase than the bonus would escalate each year not go 3 2 and 2. 


Not saying its unfair. I'm going on 3 years with no COL increase at all and am looking at the obvious alternatives to get one but a bonus is "different"

[safristi]

Wotsa BUN-ASS............sweet Jeebus.......Oooh a BRIBE to sign on and shut Lewinski-ka the fark UP.................like cranky kids in the grocery store...here Jr. have a LOLLY...ooh tax payers LOLLY $$$$   MMMMM'm GOOD ...not.................we are gonna buy their cars with AFTER TAX dollars  d'oh................

[Rupert]

That's right 2late. Good luck with that project.