Deal reached at Ford Canada

CANADA: Two down and one more to go. After striking a deal with General Motors, the IMF-affiliated Canadian Auto Workers reached a provisional contract settlement yesterday, September 30, with the second of the Big Three automakers, Ford Motor Co. Following closely the contract agreed at GM on September 17, and ratified on September 22, the three-year contract at Ford Canada will offer workers a 3 per cent wage hike in both the first and second years of the agreement, and 2 per cent in the third year. Workers will also receive a signing bonus of C$1,000 (US$631), 28 hours of additional paid time off - which will create 200 new jobs at Ford, a vacation bonus of C$1,500 (US$948) in each year, and improved health care benefits. A most important union issue in the negotiations - concerning the closure of an Ontario light truck plant - was resolved when the company agreed to delay the plant closure and to retrain 900 of the plant's 1,400 workers for a new shift at a nearby Ford minivan plant. The remaining 500 workers are expected to accept retirement incentive packages. A ratification vote will be held for the CAW's 13,000 Ford members on October 5 and 6. Contract negotiations with DaimlerChrysler will follow shortly. Note: In the ratification vote held on October 5 and 6, 92.7 per cent of CAW Ford members cast a ballot in favour of the new contract.