CAW, Ford reach 4-year labour agreement, avert strike

Deal will create 500 new jobs at Oakville facility
|labour-reporter.com|Last Updated: 09/17/2012

The Canadian Auto Workers union (CAW) has reached a deal with Ford, averting a strike at Ford’s Canadian operations that was set to begin Monday night at 11:59 p.m. eastern time.

The four-year agreement does not provide any base wage increases, but includes cost-of-living bonuses and a $3,000 signing bonus. It also includes incentives for older employees to retire, opening up some positions for 1,200 CAW members who were laid off from Ford’s St. Thomas, Ont., assembly plant after it closed last year.

CAW president Ken Lewenza said a new vehicle will create more jobs, and a partial third shift at the Oakville facility will create an additional 230 positions.

CAW agreed to lower labour costs by lowering the wages of newly hired employees, who will start at $24 per hour, moving to $34 per hour over six years.

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