Ford, GM Set Deals with Canadian Auto Workers
The three large American auto firms have to hope that their negotiations with the United Auto Workers will be as easy as the ones they have had with the Canadian Auto Workers. The CAW have set deals with Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM). These almost certainly will be ratified. Since Chrysler is the smallest of the three companies, it does not want to be the only one that could be harmed by worker slowdowns or strikes. It is on a hot sales streak it cannot afford to have interrupted.
According to the AP:
CAW President Ken Lewenza called it a difficult few days but said GM ultimately agreed to the framework of a deal that the union reached with Ford Motor Co. earlier this week.
The union decided to keep working past a midnight Monday strike deadline after reaching a deal with Ford and extending its contracts with GM and Chrysler.
Workers stayed on the job as talks continued, but the union warned it could go on strike after giving GM and Chrysler 24 hours' notice. They wanted the Ford contract to serve as a template for the other two companies.
Like the Ford deal, the GM agreement cuts wages for new hires and freezes pay for current workers. But it also gives them lump-sum payments to cover inflation and for ratifying the deal.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Autos, International Markets, Labor & Unions Tagged: F, GM