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Topic: Magna to Build Cars for Ford? CAW Proposal for St. Thomas
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robbie_dee
rabble-rouser
Babbler # 195
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posted 29 August 2006 09:04 AM
quote:
The Canadian Auto Workers union is offering a radical new labour agreement to Ford Motor Co. that could involve Magna International Inc. building and owning a new assembly plant to manufacture small cars near St. Thomas, Ont.The proposal -- obtained by The Globe and Mail -- calls for Ford to keep its St. Thomas Assembly Plant open and Magna, or some other contract vehicle assembler, to build a new factory next to that plant and produce cars for Ford. CAW president Buzz Hargrove confirmed yesterday that the union has presented the proposal to Ford officials in both Canada and the United States, senior executives of Magna and to the Ontario government, which would be expected to provide financial assistance.
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The CAW is proposing a two-tiered wage scale with pay for new employees starting at 75 per cent of the rate in the existing Ford contracts and taking six years to grow to 100 per cent. In the first six years of the new contract, the CAW would eliminate the several days of special paid absences that workers now enjoy. The CAW estimates the capital cost of the project at about $760-million if it received the 20-per-cent financial assistance the Ontario and federal governments provided to Ford for its Oakville, Ont., redevelopment and GM for the $2.5-billion investment that the auto maker is making in its Ontario operations.
Globe & Mail story [ 29 August 2006: Message edited by: robbie_dee ]
From: Iron City | Registered: Apr 2001
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Farmpunk
rabble-rouser
Babbler # 12955
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posted 30 August 2006 09:31 AM
Hope this isn't off topic.
Just read in Business Week an interview with Ford's head Ford, John Jr, I think. He didn't have much to say other than nothing is sacred anymore, no lines, no company policies, and that his only concern would be to make the company viable. Lines that beig scaled back by 30% this year: anything big and inefficient. Lines on the chopping block: Lincoln, amoung others. Doesn't Talbotville produce Lincoln towncars? Doesn't Ford have a minivan plant in Oakville?
The line I like best in the original post here is how Ontario will be expected to help out the auto maker. Ford will live on in Ontario as long as the government keeps propping. Why would they leave? Of course, unions will have to accept ugly terms, and it would help a lot if tax breaks were on the negotiating table.
Buzz is an amazing bagman\strongarm. If he can pull off a deal like the above then he's an evil genius. Sticking it to his own union members, the taxpayers of Ontario, all while hugging Magna and Ford execs and heaping praise on himself for saving jobs.
From: SW Ontario | Registered: Jul 2006
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Pearson
rabble-rouser
Babbler # 12739
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posted 30 August 2006 06:02 PM
Farmpunk, I'm not sure exactly what it is that you think should happen.Big auto-makers are losing money in North America. So, what do you think should happen? Do you think the union workers should take less salary? Do you think taxpayers should pitch in? Or do you think that the corporation should invest a whole lot of money, so that they can lose more money? Or perhaps you think that the Canadian government should mandate Canadians to buy these cars at inflated prices? Please tell me your solution.
From: 905 Oasis | Registered: Jun 2006
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Farmpunk
rabble-rouser
Babbler # 12955
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posted 31 August 2006 03:23 AM
What do I think should happen? Or what do I think will happen?
Will Happen. The provincial gov, having come up with a wonderful surprise surplus for this year (due to sharp fiscal management a la the Paul Martin model)will now hand out money to auto sector. They'll point to GM's reinvestment in the Camaro line as evidence that this government is interested in keeping these jobs in Ontario. The Libs will help out Ford, which means they'll also have to help out the other two of the big three because there has to be level playing field of course. The domestic auto makers will take this money, use some of it to throw at their Ontario ops, and use the rest to offset their overall loses. The government will be helping the bottom line of the big three, and the jobs will eventually be lost regardless because the big three are interested mainly in cutting the nuts of their unions and restructuring along lines of Toyota-Honda.
That's what I think is going to happen, mainly because that's the way the government and the domestic manufacturers have always worked, at least since the mid-80s when asian vehicles starting coming into the country. The domestics provide these "high paying jobs" and the government subsidizes their operations. Strange how we never hear the US complaining about how Ontario dumps money into the pockets of the big three as a subsidy... Perhaps because the big three and the powers that be in the States are liking the way Ontario props up a failing industry with tax breaks and handouts, publically funded handouts.Your questions: should the unions take less salary? I'm not sure they're going to have an option soon. They'll have jobs or they won't, make a choice. The industry likely isn't going to leave but they sure want to become more "flexible".
Should the taxpayers pitch in? No. But we're going to regardless. We have no say in the matter, whichever party is in power.
Corps investing more money to lose money? They aren't investing fuck all right now, they're allowing our government to do that for them. Why should they run their business differently?
Inflated prices for Canadian made vehicles? No. Everyone's buying Honda-Kias-etcs anyway. You can't force people to buy anything. As to what I think should happen, my solution, that will take another post.
From: SW Ontario | Registered: Jul 2006
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