Canadian workers OK new contract with Ford

Bryce G. Hoffman / The Detroit News

Members of the Canadian Auto Workers voted overwhelmingly this weekend in favor of a new agreement with Ford Motor Co. even as their counterparts in the United States voted down changes to their own contract with the Dearborn automaker.

"No one should mistake workers' approval as satisfaction with the new agreement," said CAW President Ken Lewenza. "Members had faith in the union to negotiate the best agreement possible and protect their interests over the long term, but the problems faced by industry cannot be resolved at the bargaining table."

About 83 percent of workers voted in favor of the new agreement, which gives Ford the same concessions the CAW negotiated with General Motors Co. and Chrysler Group LLC earlier this year as part of a bailout by the Canadian government. They include a wage freeze, the elimination of one week's paid time off and higher medical co-payments. Ford will shutter its assembly plant in St. Thomas, Ontario, eliminating about 1,400 jobs in 2011.

"Ford continues to make progress on its transformation plan and our efforts to be competitive when it comes to labor costs are key to continuing to build a healthy, sustainable business in Canada," said Stacey Allerton Firth, vice president of human resources at Ford of Canada. "It is a credit to the relationship we have with the CAW that we were able to reach a responsible agreement in such turbulent economic times. Both the union and the company realized that we had to work collaboratively to meet the competitive challenges facing the industry."

Ford said workers in St. Thomas will receive a $30,000 vehicle voucher or $25,000 cash payment, extended health care benefits and extended tuition assistance. Ford will offer buyouts at other locations to create openings for workers who wish to stay.

"This has been an extremely stressful and difficult year for Ford workers, just as it has been for hundreds of thousands of workers right across the country," said Mike Vince, chairman of the CAW-Ford Master Bargaining Committee and president of CAW Local 200 in Windsor.

"Our members have been dealing with terrible insecurity as a result of financial crisis and recession and this new agreement will give a greater deal of job security."

The new agreement extends the current contract to September of 2012.