CAW reaches deal with Ford five months early

By autoblog

We've been hearing for some time now that Buzz Hargrove and the CAW didn't want to have anything to do with the two-tier wage structure or health car plans that the UAW agreed to. Before the landmark labor contracts were ratified in the States, American auto manufacturers enjoyed the cheaper cost of building cars in Canada, and because that difference in manufacturing cost was no longer a factor, it appeared that the CAW and Detroit could be in for a long and messy fight. That may not be the case, though, as word comes from our unionized-friends up north that the CAW and Ford have already agreed in principle to the major points of their upcoming contract, a whopping five months ahead of schedule.

According to Automotive News, the union is expecting a deal to be done by the end of the week. We can surmise that the deal does not include a multi-tiered wage structure, though. "We were not going to do a tier-two and if Ford had insisted it would have resulted in a fight," says Hargrove. The CAW did, however, agree to give up 40 hours of vacation time per year, a supplemental health care fund and a reduced entry-wage for new-hires. Ford will compensate CAW workers with a single payment of $3,500 for the lost vacation time and a $2,200 bonus if the contract is ratified at the plant-level. Ford also promises to keep the St. Thomas plant open until at least 2011 as opposed to the current plan of 2010. See the press release after the break for all the juicy details.

Autoblog