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Ford`s Stand: Accept cuts or we Invest Elsewhere
Ford and the Canadian Auto Workers resumed critical negotiations Monday, with the company stressing that it needed to cut labour costs here or it would have to invest elsewhere in the future.
Joe Hinrichs, Ford group vice-president of global manufacturing and labour affairs, told negotiators for the Canadian Auto Workers union that current labour costs are uncompetitive with their U.S. peers and employees at rival General Motors and Ford in Canada.
Hinrichs said a continuing disadvantage would make it difficult for Ford to invest here, according to CAW president Ken Lewenza.
"He reminded us of that again and that we have to deal with it now," Lewenza said in a brief break from talks at a downtown hotel.
Lewenza said Hinrichs underlined Ford has no plans for more production at the sputtering St. Thomas assembly plant beyond 2011. "He (Hinrichs) told us that was the reality and we have to deal with it. What we have to do now is find some balance and protect Ford investments in Canada."
Ford`s current labour costs, including benefits and pension obligations in Canada, are about $16 (U.S.) an hour more than any of its plants south of the border and even higher elsewhere. Ford`s labour costs in the United States are in the range of $50-$52 an hour.
Earlier this month Ford indicated its labour costs, which represent less than 10
Read the full article here.
Ford and the Canadian Auto Workers resumed critical negotiations Monday, with the company stressing that it needed to cut labour costs here or it would have to invest elsewhere in the future.
Joe Hinrichs, Ford group vice-president of global manufacturing and labour affairs, told negotiators for the Canadian Auto Workers union that current labour costs are uncompetitive with their U.S. peers and employees at rival General Motors and Ford in Canada.
Hinrichs said a continuing disadvantage would make it difficult for Ford to invest here, according to CAW president Ken Lewenza.
"He reminded us of that again and that we have to deal with it now," Lewenza said in a brief break from talks at a downtown hotel.
Lewenza said Hinrichs underlined Ford has no plans for more production at the sputtering St. Thomas assembly plant beyond 2011. "He (Hinrichs) told us that was the reality and we have to deal with it. What we have to do now is find some balance and protect Ford investments in Canada."
Ford`s current labour costs, including benefits and pension obligations in Canada, are about $16 (U.S.) an hour more than any of its plants south of the border and even higher elsewhere. Ford`s labour costs in the United States are in the range of $50-$52 an hour.
Earlier this month Ford indicated its labour costs, which represent less than 10
Read the full article here.