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14 January, 2002Plant closings in the USA and Canada must take account of the company's collective contracts with the UAW and CAW.
NORTH AMERICA: In an attempt to reduce costs and eliminate losses, Ford Motor Company confirmed on January 11 that it will slash 35,000 jobs worldwide, representing 10 per cent of its workforce, and shut down five plants. Approximately 21,500 of the job losses will be in North America. The world's second-largest automaker also announced it will stop production by the end of this year of four vehicle models: the Ford Escort, Mercury Cougar, Mercury Villager and Lincoln Continental, reducing its North American production capacity from 5.7 million vehicles to 4.8 million.
Plants to be closed as part of the company's restructuring plan will be: Edison Assembly in New Jersey, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum Casting and Vulcan Forge. Two assembly plants in Avon Lake, Ohio, and Cuautitlan, Mexico, could also be added to this list in the future.
All plant closings must take account of the company's collective contract with the United Auto Workers (UAW), effective until September of 2003, which bans plant closings, as well as a similar agreement with the Canadian Auto Workers (CAW), which is in effect until the autumn of 2002.
Commenting on Ford's restructuring plan, the UAW's president, Steve Yokich, said: "One lesson from these hard times is the vital importance of strong collective bargaining agreements, like the current UAW-Ford national agreement, that protect workers' rights and the economic security of their families ... The UAW's history of using constructive relationships with employers to get through tough times has been proven many times over. Despite its current problems, Ford is a fundamentally healthy company, and we are confident that it will be around for a long time to come."
UAW vice-president, Ron Gettelfinger, who directs the UAW National Ford Department, added that "because of our contract, Ford has been required to plan its restructuring in a way that respects the seniority rights -- including job placement rights, income, pension, health care, and many other protections of UAW-Ford members. We have made it clear to Ford officials that we will fully enforce our contract."
The CAW president, Buzz Hargrove, who questioned Ford's logic in closing its profit-making truck plant in Ontario, said his union was especially irritated by the lack of any level of Canadian government intervention in the critical situation with the auto industry in this country. "The attitude of leave-it-to-market-forces," he stated, "will decimate our auto sector."
Plants to be closed as part of the company's restructuring plan will be: Edison Assembly in New Jersey, Ontario Truck Plant, St. Louis Assembly, Cleveland Aluminum Casting and Vulcan Forge. Two assembly plants in Avon Lake, Ohio, and Cuautitlan, Mexico, could also be added to this list in the future.
All plant closings must take account of the company's collective contract with the United Auto Workers (UAW), effective until September of 2003, which bans plant closings, as well as a similar agreement with the Canadian Auto Workers (CAW), which is in effect until the autumn of 2002.
Commenting on Ford's restructuring plan, the UAW's president, Steve Yokich, said: "One lesson from these hard times is the vital importance of strong collective bargaining agreements, like the current UAW-Ford national agreement, that protect workers' rights and the economic security of their families ... The UAW's history of using constructive relationships with employers to get through tough times has been proven many times over. Despite its current problems, Ford is a fundamentally healthy company, and we are confident that it will be around for a long time to come."
UAW vice-president, Ron Gettelfinger, who directs the UAW National Ford Department, added that "because of our contract, Ford has been required to plan its restructuring in a way that respects the seniority rights -- including job placement rights, income, pension, health care, and many other protections of UAW-Ford members. We have made it clear to Ford officials that we will fully enforce our contract."
The CAW president, Buzz Hargrove, who questioned Ford's logic in closing its profit-making truck plant in Ontario, said his union was especially irritated by the lack of any level of Canadian government intervention in the critical situation with the auto industry in this country. "The attitude of leave-it-to-market-forces," he stated, "will decimate our auto sector."