[Pen-l] CAW and Ford reach early deal.

[ken hanly <northsunm@xxxxxxxxx>]

This is from the<a
href="http://www.thestar.com/Business/article/419341";>
Star.</a> The by the numbers introduction fails to
mention the wage freeze! This in effect means that
with inflation pay is going backward but apparently
not nearly as much as in the U.S. or to the degree
that GM and Chrysler want. If the workers gave up to
thirty dollars an hour than given that production
technicians earn only 33.90 an hour they would receive
under the minimum wage and even skilled tradespeople
receive just 40.30 so they would get just $10.30!
   I wonder if there is much contact between North
American unions and unions or auto worker
organisations in Japan and South Korea. Capital is
globalised but labor is fragmented, a good recipe for
disastrous competition between workers to the bottom.
The best one can say about Hargrove's agreement is
that it is not as bad as the UAW cave in and two tier
agreement. Ford is obviously in good shape compared to
the other two ageing auto giants. Kerkorian's
investment may be a good move for him.
  Given that TTC employees rejected the union
negotiated agreement perhaps the same could happen
with this agreement. 

 
 
 
Ford reaches early labour pact
 TheStar.com - Business - Ford reaches early labour
pact
 
 
RON BULL/TORONTO STAR 
CAW president Buzz Hargrove announces the centrepiece
of a three-year deal between the union and Ford. BY
THE NUMBERS

9,000
workers covered

$2,300
"productivity and quality" bonus on ratification 

$3,500
payment in exchange for vacation time

3 years
length of agreement 

1 week
of vacation given up

1 year
extension for the plant in St. Thomas




--------------------------------------------------------------------------------

FURTHER FORAY


DETROIT?United States billionaire Kirk Kerkorian has
made yet another foray into the troubled automotive
industry with an offer to expand his stake in Ford
Motor Co. to 5.6 per cent.

Kerkorian's investment company, Tracinda Corp., sees
signs the automaker's turnaround plan is working and
plans to offer $8.50 (U.S.) per share in cash for up
to 20 million additional shares. Yesterday's offer
represented a 13.3 per cent premium over Friday's
close.

Tracinda said Ford's first-quarter results reinforced
the view that the company is having success in its
turnaround efforts, despite the difficult U.S.
economy.

On Thursday, Ford posted a surprise profit of $100
million for the first quarter, the first since the
second quarter of 2007.

"Tracinda believes that Ford management under the
leadership of chief executive officer Alan Mulally
will continue to show significant improvements in its
results going forward," Tracinda said.



Associated Press


Canadian Auto Workers' chief says tougher times behind
move to bargain outline of deal in advance

April 29, 2008 
Tony Van Alphen
Business Reporter

The Canadian Auto Workers stunned the auto industry
yesterday by announcing it had reached agreement with
Ford Motor Co. on key monetary items for a three-year
deal that would freeze wages for current workers, cut
one week of vacation pay and trim some retiree
benefits.

In a dramatic shift from traditional bargaining at the
Big Three automakers, the union revealed it had
negotiated the "centrepiece" of a new deal five months
earlier than in past contract years and it would set
the pattern for subsequent bargaining at General
Motors Corp. and Chrysler LLC.

"We do recognize the problems of the companies and the
industry and we recognize the times are different and
we (have) got to do things different," CAW president
Buzz Hargrove said in an interview.

"I've read a lot about the tsunami. If I was on low
ground and saw it coming I would be heading to high
ground. That's what we did here."

Hargrove said union and company negotiators would now
drive for a tentative contract, including resolution
of local issues, by the end of the week at a Toronto
hotel.

If the two sides reach a deal, about 9,000 workers in
Oakville, Windsor and St. Thomas would vote on it
within a week. 

Ford spokesperson Lauren More cautioned that a
tentative contract will depend on successful agreement
on local issues specific to each operations. 

If workers ratify, the union would press for similar
deals at GM and Chrysler, which have taken a harder
public position on the need to cut labour costs
significantly so they can compete with Japanese-based
rivals.

The Ford deal could set the stage for a major
confrontation. Hargrove, however, avoided using the
word strike.

Analyst Dennis DesRosiers said the monetary terms with
Ford put GM and Chrysler in a difficult position that
could ultimately give an edge to the Japanese auto
giants, which have no unions in North America.

"Both these companies (GM and Chrysler) were looking
for the CAW to give back a lot more than this contract
ended up giving up so they are going to be very
disappointed," said DesRosiers. "They were looking for
upwards of $30 per hour and this agreement doesn't
even come close to that number."

The union has said this year's bargaining would be the
most difficult round of negotiations in its 23
year-history because of the continuing slide in market
share by the Big Three, competitive pressures and
significant concessions in last year's deals by the
United Auto Workers in the U.S. 

The current contracts in Canada affect more than
30,000 workers and expire in mid-September. Production
technicians currently earn about $33.90 an hour while
skilled trades people receive about $40.30. They are
among the highest paid industrial workers in the
country.

Under the Ford deal, the starting wages of new
employees would drop to 70 per cent of full rates but
they would gradually increase to 100 per cent after
three years. In the current contract, new workers
start at 85 per cent and move to 100 per cent after
three months.

Although the provision cuts starting rates, Hargrove
stressed that the union had successfully beatenback
the controversial two-tier wage and benefit system
that the UAW accepted last fall in efforts to slash
labour costs at U.S. operations. 

But under terms of the Ford deal here, the union
agreed to an immediate freeze in a cost-of-living
allowance until September next year and a reduction in
vacation pay by 40 hours or one week annually.

In exchange for the freeze, Ford would give workers a
$2,300 bonus this fall and a $3,500 special payment
the following year for the loss of vacation pay over
three years.

The union said it had also gained a reprieve on any
decision about the future of the company's sputtering
assembly plant in St. Thomas until the fall of 2011.
The plant operates on only one shift and Ford had
committed to production only until 2010.

Union officials acknowledged that the monetary cuts
won't match the labour savings in the UAW deals in the
U.S. But CAW economist Jim Stanford emphasized that
the Big Three operations in Canada are more productive
so the deal shouldn't jeopardize future investment.

The union's main bargaining committee has endorsed
Ford's offer, which followed secret negotiations
during the last two weeks.

Hargrove explored early bargaining but found little
interest from the automakers and indicated recently
that chances of success were remote. But the union and
Ford found common ground to spur full bargaining two
weeks ago.

 

And thousands of retirees won't get an increase in
their inflation-indexed pensions for a year as
protection will resume in the second and third years. 

The sides also negotiated a stricter limit on
long-term care expenses for retirees plus a 10 per
cent increase in prescription drug payments to a
maximum of $250 annual per family.

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