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Tag Archives: caw
CAW members at Chrysler have approved a new collective bargaining agreement, voting 90% for ratification, the Canadian union announced late yesterday. The number of Chrysler members actually casting ballots was not disclosed after ratification meetings held over the weekend in Windsor, Brampton and Etobicoke, Ontario.
It was the end of a difficult series of negotiations for the weakened union, as the three multinational automakers – Chrysler, Ford and GM – presented a united front and asked for the end of all defined benefit pensions, cuts in current wages, which ranged from C$34-$41, dropping the “30 years and out” retirement provision, and elimination of most work rules. The Detroit Three argued that an overvalued Canadian dollar, unhealthy financial markets, and increasing imports from Asia and Europe, required the drastic givebacks. When the deal was finally done, a partial victory emerged for both sides, and it was arguably the best the union could do against job-exporting automakers without bringing the factories tumbling down on its own union members. Continue reading
CAW members at General Motors have approved a new collective agreement by 73% after voting took place at a series of ratification meetings Wednesday and Thursday in Oshawa, St. Catharines and Woodstock, Ontario. The union did not release the actual number of members who voted but said that 72% of production workers approved the deal, with skilled trades members 79% in favor. The CAW represents 21,000 workers at the Detroit Three auto companies, including more than 8,000 GM workers including 2,500 at CAMI in Ingersoll, Ontario. Continue reading
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
Chrysler negotiators might be holding out to see if the CAW can get the controversial contracts ratified. A step in that direction occurred today as CAW in-plant leadership at Ford unanimously endorsed the new, four-year collective bargaining deal that extends U.S. style two tier wages. The union will be holding a series of ratification meetings over the weekend, where members at Ford will vote on the tentative deal. Continue reading
Thus far, what is known of the Ford contract represents mixed results for the union, which was fighting a defensive action since talks opened in August. In spite of a push to reduce wage costs by all the automakers, the union retained its base pay and got cost of living bonuses. However, the controversial two-tier wage system that union members decry as divisive remains in place for ten years. Sharply lower wages for new hires at 60% of full pay would only allow them to reach parity after they are on the job for ten years. This could pose ratification problems. A similar deal remains controversial at the UAW in the U.S. among its members, which was successful last year in getting a two-tier contract renewed in spite of member opposition. Continue reading
Ford Motor Company and the Canadian Auto Workers union (CAW) have reached a tentative agreement on a four-year national labor contract covering approximately 4,500 Ford unionized employees in Canada. The agreement came just hours before a strike deadline. General Motors and Chrysler currently face potential walkouts at midnight. Continue reading
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