TORONTO - Nearly 9,000 Canadian Auto Workers have ratified a landmark, three-year deal with Ford Canada that will frame looming labour talks between and the union and the country's beleaguered auto industry.
On Sunday night, 78 per cent of Ford Canada's workers voted in favour of the agreement, which will increase pension payments and extend the life an assembly plant in St. Thomas, Ont., by one year, the CAW said.
CAW President Buzz Hargrove said Sunday the agreement is a "victory'' and that it looks after workers past and present
"It takes care of current workers and retirees while recognizing the challenges facing the industry,'' Hargrove said in a statement.
"And it doesn't do this on the backs of future workers either, with any sort of two-tier structure.''
The contract freezes base wages and cuts vacation pay but it ensures workers' base wages stay constant.
Wage changes reflecting fluctuations in the cost of living will also be frozen until December 2009.
The successful ratification comes nearly a week after Ford and the CAW surprised the auto industry with the announcement they had reached a new deal.
The ratification also comes four months early and marks a significant shift away from traditional bargaining practices with the Big Three automakers in Canada.
The early ratification of the Ford deal means there won't be any labour unrest in the run-up to a new deal -- something which often accompanies new rounds of bargaining.
The agreement was passed after workers met Sunday in Oakville, Windsor and St. Thomas.
The deal includes a $2,200 ratification bonus and a drop of 40 annual vacation hours.
However, workers will see a $3,500 cash payment in January to help compensate.
The CAW plans to meet with General Motors of Canada Monday and Chrysler Canada on Tuesday.
The current contracts with GM and Chrysler run out in September and affect around 22,000 workers.
However, in the past, both GM and Chrysler have taken a harder line than Ford on the need to cut costs in the face of rising competition from Japanese-based manufacturers.
Mike Vince, chair of the CAW-Ford Master bargaining committee said Sunday the agreement comes as the auto industry continues to be battered by a high Canadian dollar, soaring oil prices and "unfair trade.''
Last week, GM, the country's largest auto maker, announced it was slashing 900 jobs at a truck assembly plant in Oshawa, Ont, because of falling demand due to soaring fuel prices.
That announcement came on the heels of a slow down at the plant in January, when GM announced it would cut a shift and 1,000 jobs.
