Canadian Union Leader Slams Ford’s Opening Offer

The head of the Canadian Auto Workers union said he was shocked by Ford Motor Co.’s initial contract proposal and that it would be nearly impossible to reach agreement before the midnight Sept. 21 deadline.

“It’s so bad it jeopardizes their ability to get a settlement without a work stoppage,” said CAW President Buzz Hargrove. “Even in 1979 when Chrysler was facing bankruptcy, their first proposal was better than this.”

The world’s second-largest auto maker this morning offered a $340 lump-sum payment in the first year and 1% wage increases in the second and third years. The CAW represents about 13,000 Ford workers.

First offers rarely reflect where either management or the union expects to settle. Still, Hargrove said he disclosed the offer because it was the worst he had seen in more than a decade.

“We’re not going to negotiate any place other than at the bargaining table,” said Ford spokesman Jim Hartford. “We’ve got five full days and I think we can get there.”

Hargrove didn’t threaten to stop bargaining with Ford and go to another company. The union’s contracts with General Motors Corp. and DaimlerChrysler AG also expire Sept. 21. The CAW is seeking its pattern-setting agreement with Ford.

Ford’s plan to spin off its Visteon Automotive Systems parts unit, which the United Auto Workers union in the U.S. opposes, isn’t a direct issue in the Canadian talks. Visteon has no plants in Canada.

But a strike by the CAW could have a quick, substantial impact on production of Ford’s very profitable trucks. Ford’s Windsor, Ontario, engine plant supplies the Ford Expedition, Excursion, Econoline, and F-Series pickups and Lincoln Navigator.

“That’s the most profitable engine plant in the world,” said Sean McAlinden, a labor-economics researcher at the University of Michigan.

Ford assembly plants in Oakville and St. Thomas, Ontario, build Windstar minivans, F-Series pickups, and Ford Crown Victoria and Mercury Grand Marquis sedans.

Ford shares rose 1/16 to 50.