CAW, Ford resume talks

Ford Canada and the Canadian Auto Workers union resume talks in Toronto on Monday, as both sides try to reach agreement on a new contract for Ford's 7,000 Canadian workers.

The CAW is asking its members to reflect on possible cost concessions in a new deal with the carmaker, even if Ford's U.S. parent turns a profit when it reports third-quarter results on Nov. 2.

But CAW president Ken Lewenza said this doesn't negate the need for a new labour contract in Canada that will cut costs for the company.

"When Ford Motor Co. looks like they're starting to turn a profit, then workers themselves ask, 'Why are sacrifices necessary?' " Lewenza said.

That said, Lewenza said he's "frustrated" at Ford's refusal to date to make any promises regarding production or jobs at its Canadian plants.

"We've had lots of bargaining sessions, lots of exchanging of information, and the job quite frankly should be done by now and it isn't," he said.

"It's really all about future investment and future security of Ford workers in Canada, but we haven't been able to get it done."

Talks adjourned in September after earlier rounds made no progress. Ford says it needs workers to give it the same concessions they gave competitors General Motors and Chrysler earlier this year in order to stay competitive. In exchange, the union is asking for a guarantee the company will maintain current production levels in Canada.

Agreement reached in U.S.

Since the CAW and Ford broke off official talks, the United Auto Workers in the U.S. have reached their own agreement with the company which includes a six-year ban on striking over wages or benefits and a wage freeze for new hires. In exchange, the company has promised a $1,000 US one-time bonus and has made some production commitments.

However, many UAW workers are angry about the no-strike clause and it is by no means assured that the contract will be ratified by the union's membership, who will vote on it throughout the week.

"It's going to be a very tough vote, and that would change things for the CAW if the UAW membership voted down those concessions. That would help the CAW a lot," said Tony Faria, co-director of the automotive research centre at the University of Windsor.

Ontario plant set to close

The main issue in the ongoing negotiations on this side of the border is the future of an assembly plant in St. Thomas, Ont.

'To be honest we haven't made much headway' —Ken Lewenza, president of Canadian Auto Workers

Currently, the 1,600-employee plant builds the Ford Crown Victoria, the Lincoln Town Car and the Mercury Grand Marquis — all full-sized cars, demand for which is limited to niche markets. The Crown Victoria is only included in sales of fleets, such as those run by police departments and taxi companies.

Ford has said repeatedly that it has no plans to manufacture vehicles in St. Thomas beyond 2011. Lewenza has suggested Ford could increase production at its other Canadian plants to offset the closure of St. Thomas, but Ford won't release any details on its plans.

"We've asked them to take a look at where existing work is being sourced and see if there's a possibility to source more work into our workplaces and those are the options we're going to have to talk about (this) week, but to be honest we haven't made much headway," Lewenza said.

Ford spokeswoman Lauren More said the company doesn't discuss future production or product plans for competitive reasons.

She would only say the company is looking forward to "working with the CAW to find additional cost savings in order to ensure the competitiveness of our manufacturing operations in Canada."

Windsor plant 'a better bet': expert

Faria said there may be ways to increase production at Ford's two engine plants in the Windsor, Ont., area.

"I think in terms of getting a commitment from Ford for some future investment and future jobs, I think their engine facilities in Windsor are a better bet. Ford is always going to need engines, power trains and transmissions for their vehicles," he said.

According to the CAW's own data, which is supported by independent data from industry adviser AutomotiveCompass, Ford intends to slash its Canadian manufacturing presence from 13 per cent to eight per cent of total North American production by 2013.

CAW economist Jim Stanford has said the company's plans for its southern Ontario operations include closing the St. Thomas plant by 2011, permanently shrinking production in Oakville from three shifts to two, and cutting back the workforce at an engine plant in Windsor.

The union has accused Ford of asking for the same concessions given to General Motors and Chrysler in negotiations earlier this year, without being willing to make the same promises in return.

Chrysler committed to maintaining 20 per cent of its assembly operations in Canada, while GM promised to keep 18 per cent of its operations here.

Ford employs about 7,000 hourly workers in Canada and more than 70,000 in North America. Its North American workforce has shrunk by more than 40 per cent since late 2006, when it employed more than 112,000 workers.