January 11, 2007
Ford and CAW negotiate current restructuring benefits
Toronto, Ontario – The Canadian Auto Workers Union (CAW) has negotiated an agreement with Ford Motor Company that enhances the current restructuring benefits available to CAW members at Ford locations in Canada. The enhanced incentives are designed to deal with the impact of layoffs announced by Ford in its “Way Forward” restructuring program.
In addition to the $70,000 retirement incentive currently available to production and skilled employees, a $30,000 voucher for the purchase of a new Ford vehicle is available to the employee or spouse; retiring tradespersons will receive an additional $15,000 cash payment; non-retirement eligible employees will be provided with an incentive of up to $100,000, depending on years of service, if they leave the company; and retiring employees who accept the restructuring incentive may opt to waive post-retirement health care benefits and receive an additional $40,000.
CAW president Buzz Hargrove says that the enhanced plan is an effort to avoid as many forced layoffs as possible, and that the union will continue to make arguments with Ford that Canadian facilities deserve new investment and new product. Hargrove also called on Stephen Harper to establish a national automotive policy to deal with imports. “The unprecedented restructuring by Ford Motor Company is a direct result of the increasing levels of imports from Japan and South Korea,” Hargrove said.