Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Ford Reaches Deal With Canadian Auto Workers

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Ford Motor (NYSE: F  ) has reached a deal with the Canadian Auto Workers (CAW) union, according to The Globe and Mail, sidestepping a strike which was set to start at midnight. The deal will create 500 jobs in Ontario, though new hires will be paid a lower hourly wage. The four-year deal includes $2,000 bonuses for cost-of-living adjustments, according to the report.

General Motors (NYSE: GM  ) and Chrysler remained in negotiations with the union early in the evening to see if they, too, could avoid a Canadian strike scheduled for midnight.

The new agreement, instead of starting workers at $24 an hour and taking six years to reach $34 an hour, will cut starting wages and take 10 years to reach the $34 rate, according to The Globe and Mail report.

Some 21,000 Canadian auto workers were set to go on strike if a deal was not reached. Auto executives at the Detroit-based companies claim that Canada is now the most expensive country in the world to make cars, and the newly profitable auto industry is trying to cut costs.

To stay on top of the opportunities and risks facing Ford, subscribe to the Motley Fool's premium report on Ford, which comes with a full year of company-specific updates.

Fool contributor John Divine owns no shares of any companies listed above. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool owns shares of Ford Motor. Motley Fool newsletter services have recommended buying shares of General Motors and Ford Motor. Motley Fool newsletter services have recommended creating a synthetic long position in Ford Motor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 17, 2012, at 6:17 PM, jct6038 wrote:

    If Canada is the most expensive country in which to build cars, then bring the jobs back to the USA!! Or will they then change their tune about costs here?

  • Report this Comment On September 17, 2012, at 10:43 PM, mistacy wrote:

    Reaching this deal shows again that Ford means business. Not only that, but business done well. Current share prices of F vs GM make no sense. F should be in the mid 20s & GM should be in the lower 10s.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2019798, ~/Articles/ArticleHandler.aspx, 10/23/2016 5:46:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
F $12.02 Up +0.05 +0.42%
Ford CAPS Rating: ****
GM $32.04 Up +0.29 +0.91%
General Motors CAPS Rating: ***