GM, Chrysler worried about Ford-CAW tentative agreement

Canadian Auto Workers (CAW) president Ken Lewenza hopes that General Motors and Chrysler will use Monday's tentative agreement with Ford as inspiration for their own collective bargaining agreements.

While there will be no base wage increases during the next four years, Ford will create 800 new jobs, 600 of which will be offered to former employees who had been laid off.

The new agreement also includes CPI-linked lump sums of $2,000 in each of 2013, 2014 and 2015, as well as a $3,000 bonus on ratification.

Talks with GM and Chrysler continue, thus extending the deadline before a possible work stoppage.

Industry analyst Dennis DesRosiers believes that the CAW's desire to apply the same agreement with these two American manufacturers could prompt them to reconsider their Canadian presence.

A mere 4% of Ford's global production comes from Canada. In the case of Chrysler, it's 20%. That means the latter has more to lose in the current negotiations.

Source: lesaffaires.com