CAW negotiates strong pension and wage gains in tentative contract with Ford Canada
23 September 1999
CAW negotiates strong pension and wage gains in tentative contract with Ford Canada
TORONTO, - CAW president Buzz Hargrove announced last
night the union has reached a tentative three-year agreement with Ford Canada
that provides substantial pension and wage increases, more time off the job,
greater job and income security, more apprentices, important new child care
support provisions and much more.
``This agreement reaches out to help our members and their families in
many ways--improving lives across the board all the way from the workers to
their young children, to students, to those about to retire and to those who
have already retired,'' said Hargrove. ``This contract ensures working people,
their families and communities win a greater share of the massive amounts of
wealth they help create.''
Alex Keeney, chairperson of the CAW-Ford Master Bargaining Committee,
said the tentative agreement recognizes the contribution made by Canadian
workers to Ford's extraordinary profitability. ``By supporting our retirees,
by creating jobs and building greater security for existing members, this
contract ensures a brighter future for auto workers as we enter a new
millennium,'' Keeney said.
In addition to the new three year tentative agreement, the CAW has
reaffirmed its commitment to six year pension programs for its members. The
new provisions are aimed at allowing more members to enjoy retirement while
also providing a greater degree of security for younger members as well as
creating more opportunities for our kids.
The front end loaded pension improvements will result in a 13.5 per cent
increase in the basic pension in the first year of the agreement. But over the
full six years the basic pension rises by 25 per cent. The 30 and out
retirement provision has been improved to allow workers to retire at any age
with a $2,800 per month pension increasing to $3,100 starting in October 2004.
This improved benefit encourages large numbers of auto workers to retire
during the life of the contract. A special increase was bargained for 3,200
pre-1987 retirees. Other groups of retirees also gain pension improvements
with this agreement.
Surviving spouses benefits will increase from 60 per cent to 66 2/3 per
cent of the basic benefit.
The new agreement gives a 13.5 per cent wage increase including COLA over
three years which is made up of a three per cent wage hike in each year with
1.8 per cent, two per cent and two per cent Cost of Living Allowance
projections.
In addition it gives members a $1,000 signing bonus in the first year and
an improvement in the annual vacation bonus increasing by $300 to $1,200 a
year.
The tentative agreement will also create new jobs in our communities in a
number of ways. It provides for six weeks of Special Paid Allowance (SPA) over
the three years, up from five weeks. Over the last six years the SPA program
has created 2,500 jobs in the Big Three as companies are forced to hire
workers to fill in for those on SPA. SPA is extra time off the job in addition
to regular vacation and holidays.
Hargrove said that through SPA in the Big Three alone the CAW has
bargained the creation of as many jobs as those promised by Japanese
manufacturers in Ontario.
The CAW has created opportunities for younger workers with the addition
of 100 apprenticeship openings at Ford.
The 1999 tentative agreement at Ford builds on the work ownership
protections bargained in the 1996 round of contract talks by including
language dealing with the impact of modular production.
A neutrality letter dealing with the parts supplier industry emphasizes
the importance of workers being able to freely chose to join a union without
the fear of intimidation, threats of plant closure or other tactics used to
thwart a workers democratic right to chose.
The longstanding commitment of the CAW to not-for-profit, licensed child
care was expanded through the start of a new annual child care subsidy of
$2,000 for children under five years of age. A special $150,000 fund will help
to identify problems for working class families such as overtime, shift
scheduling and help existing licensed, not-for-profit facilities with
accommodating needs such as purchasing extra sleeping cots.
Faced with government education cuts and the rapidly rising tuition fees
for post secondary education, the tentative deal provides an $800 annual
tuition fee subsidy per child.
The new contract also provides for same-sex benefits, including pensions,
survivors' benefits and bereavement leave.
The CAW represents approximately 13,000 workers at Ford Motor Company.
The pattern agreement will be carried to the next company that the union
selects for bargaining. The decision on whether DaimlerChrysler or General
Motors will be the next company in this round of bargaining will likely be
decided Monday, September 26.
Ratification meetings on the CAW Ford contract will be held on Sunday,
September 25.