Rally 'round the family: Ford backs up Chrysler's "weak" assessment of new CAW contract

GM just ratified an agreement with the Canadian Auto Workers union, and as soon as it did, Chrysler blasted it for being "weak." Chrysler's complaint was that the CAW didn't offer enough concessions to bring production costs into line with market realities. Now Ford has piped up in Chrysler's corner, saying " We believe the recently negotiated agreement between General Motors Canada and the Canadian Auto Workers will not keep Ford's Canadian operations competitive in today's global economy."

Ford's Canadian labor costs per hour are supposed to be $70 Canadian, about $55 in U.S. dollars. Even though that is the amount that Ford recently just got its American labor costs down to, the company says it will need more savings from up north. GM, which hailed the agreement as promising, hasn't commented on its competitors' assessments, and neither has the CAW.

[Source: Auto News, sub req'd]

Share This Photo X