24 October, 2007Union and auto parts supplier develop a new way of working together that would cover 18,000 Magna employees in Canada when implemented.
CANADA: The Canadian Auto Workers (CAW) union and Magna International Inc. signed a historic agreement that that creates a new kind of relationship between Canada's largest automotive employer and Canada's largest private sector union. "With this agreement, Magna and the CAW will develop a new way of working together," Hargrove said in signing the agreement. "It will strengthen the CAW's ability to support auto parts workers at an incredibly challenging time, but in a way that also strengthens Canada's auto industry."
The agreement signed on October 15, called the Framework of Fairness, will allow Magna employees to participate in secret-ballot votes regarding membership in the CAW. It also establishes an innovative new structure for labour relations involving workplace elections and referenda; a multi-faceted dispute settlement process; and the use of final-offer arbitration instead of work stoppages to settle contract disputes.
The Framework of Fairness is not a collective agreement. It is a set of principles that will govern the process whereby Magna workers vote on union membership, negotiate and approve their contract, and resolve concerns. Once fully implemented, the Framework would cover up to 18,000 Magna production employees working in about 45 manufacturing facilities in Ontario.
"Magna and the CAW have established an effective working relationship through our existing unionized facilities, and through our participation in joint industry initiatives like the Canadian Automotive Partnership Council," said Hargrove.
Magna employees at each plant will have the chance to vote (in secret-ballot elections supervised by independent officials) on whether to approve a new contract and join the CAW. If a majority of workers in a facility support CAW membership, then that plant will be covered by a new CAW-Magna national collective agreement, and its employees will join the CAW. The national contract, CAW membership, and subsequent changes negotiated to that national contract must all be approved by Magna employees through secret-ballot votes.
Magna International is the world's most diversified automotive supplier, with 83,000 employee working in 23 countries, including over 20,000 in Canada.
The CAW currently represents over 25,000 production employees working for independent auto parts firms, including in three Magna facilities.