Motor Co. joins LLC in criticizing the recent agreement struck between Canada and the Canadian Auto Workers as too weak.
The pact between GM and the CAW provides labor-cost relief to the auto maker, butand argue the deal does not go far enough to help the beleaguered auto makers realize the cost savings needed to weather the ongoing economic recession.
The agreement calls for a wage freeze, less paid time off, the elimination of cost-of-living raises and the transfer of more health-care costs to employees. Eight-seven percent of GM’s CAW-represented workers voted to accept the agreement.
On Wednesday, Chrysler President and Vice Chairman Tom LaSorda warned Chrysler could be forced to cease operations in Canada if the union did not agree to concessions beyond what was granted GM.
In a statement, Joe Hinrichs, Ford group vice president-global manufacturing and labor affairs, says the “agreement betweenCanada and the CAW will not keep Ford’s Canadian operations competitive in today’s global economy.
“The GM-CAW agreement will not deliver sufficient labor cost savings compared to auto manufacturing operations in the United States,” he says. “Therefore, we look forward to working with the CAW to find additional cost savings in order to maintain the competitiveness of our manufacturing operations in Canada.”
“We have a long history of working collaboratively with the CAW, and we’re confident that we can reach an agreement that keeps our Canadian operations competitive.”