Ford Canada begins talks with union

— Ford Motor Co.'s Canadian division and the Canadian Auto Workers union began labor talks on Tuesday after the union made substantial concessions to both General Motors and Chrysler earlier this year.

Ford asked the CAW to reopen its current labor contract, which doesn't expire until 2011.

The GM and Chrysler concessions were part of a restructuring process that saw both automakers file for U.S. bankruptcy protection and receive billions of dollars from governments in both Canada and the United States.

Ford avoided government bailouts but Ford Canada president and CEO David Mondragon has said the company needs a new labor contract similar to that at GM and Chrysler in order to stay competitive in both Canada and the U.S.

Leaner versions of GM and Chrysler have since emerged from bankruptcy protection.

The CAW has expressed a willingness to negotiate.

"If Ford Motor Company is serious about reaching a new agreement with our union, it must commit to maintaining, and hopefully expanding, its Canadian production footprint," CAW president Ken Lewenza said in a statement.

Ford Canada employs about 7,000 people at three plants in southern Ontario.

The Canadian Auto Workers agreed to slash labor costs at GM and Chrysler by cutting benefits, changing pension funding obligations and creating a trust for retiree health benefits.


