Ford Reaches Deal With Canadian Auto Workers

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Ford Motor (NYS: F) has reached a deal with the Canadian Auto Workers (CAW) union, according to The Globe and Mail, sidestepping a strike which was set to start at midnight. The deal will create 500 jobs in Ontario, though new hires will be paid a lower hourly wage. The four-year deal includes $2,000 bonuses for cost-of-living adjustments, according to the report.

General Motors (NYS: GM) and Chrysler remained in negotiations with the union early in the evening to see if they, too, could avoid a Canadian strike scheduled for midnight.

The new agreement, instead of starting workers at $24 an hour and taking six years to reach $34 an hour, will cut starting wages and take 10 years to reach the $34 rate, according to The Globe and Mail report.


Some 21,000 Canadian auto workers were set to go on strike if a deal was not reached. Auto executives at the Detroit-based companies claim that Canada is now the most expensive country in the world to make cars, and the newly profitable auto industry is trying to cut costs.

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The article Ford Reaches Deal With Canadian Auto Workers originally appeared on Fool.com.

Fool contributorJohn Divineowns no shares of any companies listed above. You can follow him on Twitter@divinebizkidand on Motley Fool CAPS@TMFDivine.The Motley Fool owns shares of Ford Motor.Motley Fool newsletter serviceshave recommended buying shares of General Motors and Ford Motor.Motley Fool newsletter serviceshave recommended creating a synthetic long position in Ford Motor. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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