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Ford of Canada Announces Four-Year Contract with CAW That Improves Competitiveness and Creates Jobs

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  • Employees vote in favour of a four-year collective bargaining agreement that improves the competitiveness of the Canadian operations and creates more than 600 new jobs in Canada over the term of the agreement
    • A third shift added to the body, paint and pre-trim departments along with additional insourced work at Oakville Assembly Complex will create approximately 300 jobs
    • Plans to produce a product based on a new global platform at the Oakville Assembly Complex have the potential to add more than 300 positions
    • Ford of Canada’s Windsor operations receive additional machining work, generating approximately 35 new openings
  • Base wages remain frozen throughout the life of the contract which expires Sept. 19, 2016, and covers more than 4,500 CAW-represented employees at Ford operations
  • Significant costs-savings are realized through an unprecedented compensation structure for new employees
 
OAKVILLE, Ontario, Sept. 23, 2012 – Ford Motor Company of Canada, Limited and the Canadian Auto Workers (CAW) have locked in a four-year collective bargaining agreement after employees endorsed the deal in votes held today.
 
The new contract includes new job opportunities at Ford’s Canadian operations and significant cost-savings for the company.
  
“By becoming more competitive in our labour costs, we are better positioned to support the growth of the Canadian economy and to provide new job opportunities,” said Stacey Allerton, vice president of Human Resources at Ford of Canada and the company’s lead labour negotiator. “For every auto job in Canada, multiple supporting jobs are created, and both the company and our employees view that opportunity and responsibility very seriously.
 
“At Ford, we are proud to be Canada’s longest-established automaker,” Allerton added. “We have employed thousands of Canadians during our 108 years here, and Ford remains committed to building a strong future in Canada.”
 
Key to establishing a more competitive future for the Ford plants is a first-of-its-kind compensation structure for new employees in Canada.
 
Employees hired after today will start at a lower wage than current employees and have a combination defined benefit and defined contribution pension plan. After 10 years, the employees ‘grow-in’ to the same pay structure as the more senior employees and earn the same wages.
 
 
Other highlights of the agreement include:
 
  • Employees covered by the agreement receive a $3,000 signing bonus
  • Cost-of-living allowances are suspended until June 6, 2016, and are replaced with a $2,000 lump sum payment in the last three years of the agreement
  • Long-term care provisions are capped at $800 per month for new participants
  • Prescription drug plan updated to reduce costs
  • Current pension levels are maintained for all retirees
  • Retirement incentives will be offered to certain employee groups to help create opportunities for laid-off employees to return to work
  • Increased operational flexibility to better meet customer demand
 
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About Ford Motor Company of Canada, Limited
Ford of Canada’s operations include a national headquarters, three regional offices, two branch offices, three vehicle assembly and engine manufacturing plants, and two parts distribution centres. Ford employs approximately 6,000 people in Canada, while an additional 18,000 people are employed in the more than 400 Ford and Ford-Lincoln dealerships across the country. For more information, please visit www.ford.ca.

 

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