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Canadian Union, Ford Said to Be Near Accord

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From Associated Press

The Canadian Auto Workers union is close to finalizing a new labor deal with Ford Motor Co. that would mean significant job cuts, the union’s leader said Sunday night.

Union President Buzz Hargrove received a formal proposal from Ford on Sunday and said he believed it would satisfy the concerns of his members.

A deal with Ford on financial issues would set a framework that its Big Three competitors, General Motors Corp. and DaimlerChrysler, would be expected to accept in subsequent talks this month.

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Hargrove said a settlement could be announced as soon as today.

“This is not the richest settlement. There will be moderate improvements in most areas,” Hargrove said. “I think it is a responsible response by Ford Motor Co. in some of the most difficult times that we’ve faced as an industry, which means our union has to face it as well.”

Hargrove declined to say how many jobs could be lost but said that at the end of the three-year contract there would be “significantly less people” working for Ford.

Such cuts will affect thousands of workers in the Ontario cities of St. Thomas and Windsor, where Ford has operations that may be downsized.

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The union is trying to reduce job losses by winning new investments at Ontario factories in its negotiations with Ford.

The new labor contract will cover more than 11,000 Ontario workers.

In July, Ford reported that profit fell 19% in the second quarter, hurt by lower production and harsh competition in North America, where it lost more than $900 million. Ford’s finance arm carried the automaker.

If no deal with Ford is reached today, Hargrove has said he will shift the focus of his negotiating team to DaimlerChrysler, which could face a strike by 11,400 workers later this month.

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