Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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.