Tag Archives: canadian auto workers

Unifor Saves Some Canadian Jobs as GM Blinks on Oshawa

Posted on 8 May 2019 by Kenneth Zino

This fight has international ramifications stretching beyond next year when the Canadian autoworkers and the UAW contracts expire at the Detroit Three. While not official, this makes the beginning of bargaining table battles that will cast a large shadow on the upcoming U.S. presidential election. Continue reading →

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Ford to Build New Edge in Canada with No jobs Added

Posted on 25 February 2014 by Kenneth Zino

The announcement comes after the Canadian Auto Workers Union accepted its first two-tier wage contract during the 2012 labor negotiations. For the first time at Ford Canada under a “New Hire Grow-In program” fledgling union workers who replace retiring CAW members will start at C$20.40, equal to 60% of the previous highest member $34 base rate, and then they only get full compensation after ten years. Continue reading →

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Ford CAW Approves First Four-Year Two-Tier Wage Contract

Posted on 24 September 2012 by Kenneth Zino

Now for the first time at Ford Canada under a “New Hire Grow-In program” fledgling union workers start at C$20.40, equal to 60% of the current highest member $34 base rate, and only get full compensation after ten years. The Obama Administration broke the power of the UAW in the U.S. as required terms for financing bankruptcy reorganizations at Chrysler and General Motors. As a result, unionized costs in the U.S. are now lower than in Canada and at some Japanese North American plants. Continue reading →

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GM Moves Canadian Healthcare off Balance Sheet to Trust

Posted on 8 November 2011 by Kenneth Zino

This means that GM Canada is free from any obligations associated with the cost of providing retiree healthcare benefits for eligible CAW represented retirees, surviving spouses and dependents. In exchange, GM Canada will transfer C$0.8 billion in cash and issue C$1.1 billion of notes to the HCT.

In its Q2 earnings GM had obligations of $4.7 billion in debt, $5.5 billion in preferred stock (U.S. government owns 26.5% of GM), $10.8 billion in unfunded pensions, and $10 billion in other post-retirement employee benefits. It’s not clear how GM is going to fund these. It looks like issuing more common stock is not feasible given current share price of ~$24, far below the IPO price of $33 and its high of $39.48. GM will report Q3 earnings tomorrow. Continue reading →

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