I wonder if there is much contact between North American unions and unions or auto worker organisations in Japan and South Korea. Capital is globalised but labor is fragmented, a good recipe for disastrous competition between workers to the bottom. The best one can say about Hargrove's agreement is that it is not as bad as the UAW cave in and two tier agreement. Ford is obviously in good shape compared to the other two ageing auto giants. Kerkorian's investment may be a good move for him.
Given that TTC employees rejected the union negotiated agreement perhaps the same could happen with this agreement.
Ford reaches early labour pact
TheStar.com - Business - Ford reaches early labour pact
RON BULL/TORONTO STAR CAW president Buzz Hargrove announces the centrepiece of a three-year deal between the union and Ford. BY THE NUMBERS
9,000 workers covered
$2,300 "productivity and quality" bonus on ratification
$3,500 payment in exchange for vacation time
3 years length of agreement
1 week of vacation given up
1 year extension for the plant in St. Thomas
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FURTHER FORAY
DETROIT–United States billionaire Kirk Kerkorian has made yet another foray into the troubled automotive industry with an offer to expand his stake in Ford Motor Co. to 5.6 per cent.
Kerkorian's investment company, Tracinda Corp., sees signs the automaker's turnaround plan is working and plans to offer $8.50 (U.S.) per share in cash for up to 20 million additional shares. Yesterday's offer represented a 13.3 per cent premium over Friday's close.
Tracinda said Ford's first-quarter results reinforced the view that the company is having success in its turnaround efforts, despite the difficult U.S. economy.
On Thursday, Ford posted a surprise profit of $100 million for the first quarter, the first since the second quarter of 2007.
"Tracinda believes that Ford management under the leadership of chief executive officer Alan Mulally will continue to show significant improvements in its results going forward," Tracinda said.
Associated Press
Canadian Auto Workers' chief says tougher times behind move to bargain outline of deal in advance
April 29, 2008 Tony Van Alphen Business Reporter
The Canadian Auto Workers stunned the auto industry yesterday by announcing it had reached agreement with Ford Motor Co. on key monetary items for a three-year deal that would freeze wages for current workers, cut one week of vacation pay and trim some retiree benefits.
In a dramatic shift from traditional bargaining at the Big Three automakers, the union revealed it had negotiated the "centrepiece" of a new deal five months earlier than in past contract years and it would set the pattern for subsequent bargaining at General Motors Corp. and Chrysler LLC.
"We do recognize the problems of the companies and the industry and we recognize the times are different and we (have) got to do things different," CAW president Buzz Hargrove said in an interview.
"I've read a lot about the tsunami. If I was on low ground and saw it coming I would be heading to high ground. That's what we did here."
Hargrove said union and company negotiators would now drive for a tentative contract, including resolution of local issues, by the end of the week at a Toronto hotel.
If the two sides reach a deal, about 9,000 workers in Oakville, Windsor and St. Thomas would vote on it within a week.
Ford spokesperson Lauren More cautioned that a tentative contract will depend on successful agreement on local issues specific to each operations.
If workers ratify, the union would press for similar deals at GM and Chrysler, which have taken a harder public position on the need to cut labour costs significantly so they can compete with Japanese-based rivals.
The Ford deal could set the stage for a major confrontation. Hargrove, however, avoided using the word strike.
Analyst Dennis DesRosiers said the monetary terms with Ford put GM and Chrysler in a difficult position that could ultimately give an edge to the Japanese auto giants, which have no unions in North America.
"Both these companies (GM and Chrysler) were looking for the CAW to give back a lot more than this contract ended up giving up so they are going to be very disappointed," said DesRosiers. "They were looking for upwards of $30 per hour and this agreement doesn't even come close to that number."
The union has said this year's bargaining would be the most difficult round of negotiations in its 23 year-history because of the continuing slide in market share by the Big Three, competitive pressures and significant concessions in last year's deals by the United Auto Workers in the U.S.
The current contracts in Canada affect more than 30,000 workers and expire in mid-September. Production technicians currently earn about $33.90 an hour while skilled trades people receive about $40.30. They are among the highest paid industrial workers in the country.
Under the Ford deal, the starting wages of new employees would drop to 70 per cent of full rates but they would gradually increase to 100 per cent after three years. In the current contract, new workers start at 85 per cent and move to 100 per cent after three months.
Although the provision cuts starting rates, Hargrove stressed that the union had successfully beatenback the controversial two-tier wage and benefit system that the UAW accepted last fall in efforts to slash labour costs at U.S. operations.
But under terms of the Ford deal here, the union agreed to an immediate freeze in a cost-of-living allowance until September next year and a reduction in vacation pay by 40 hours or one week annually.
In exchange for the freeze, Ford would give workers a $2,300 bonus this fall and a $3,500 special payment the following year for the loss of vacation pay over three years.
The union said it had also gained a reprieve on any decision about the future of the company's sputtering assembly plant in St. Thomas until the fall of 2011. The plant operates on only one shift and Ford had committed to production only until 2010.
Union officials acknowledged that the monetary cuts won't match the labour savings in the UAW deals in the U.S. But CAW economist Jim Stanford emphasized that the Big Three operations in Canada are more productive so the deal shouldn't jeopardize future investment.
The union's main bargaining committee has endorsed Ford's offer, which followed secret negotiations during the last two weeks.
Hargrove explored early bargaining but found little interest from the automakers and indicated recently that chances of success were remote. But the union and Ford found common ground to spur full bargaining two weeks ago.
And thousands of retirees won't get an increase in their inflation-indexed pensions for a year as protection will resume in the second and third years.
The sides also negotiated a stricter limit on long-term care expenses for retirees plus a 10 per cent increase in prescription drug payments to a maximum of $250 annual per family.
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