Ford and CAW reach deal on concessions

The Canadian Auto Workers union has reached a cost cutting deal with Ford Canada that will give the company lower operating costs and guarantee two new vehicle programs for the automaker's major Canadian assembly plant just west of Toronto.

Find out all the details after the jump.

Canadian Auto Workers president Ken Lewenza has confirmed the union reached a deal with Ford Canada that will see Ford close its 1,600-employee plant in St. Thomas, ON, however it will add two new vehicles to its assembly line in Oakville, ON.

Ford's engine plant in Essex, near Windsor, will also get additional work over the life of the new contract, which will expire in 2012.

Workers still need to ratify the agreement, which cuts labour and other costs for the car producer.

The union has agreed to give the automaker the same concessions it gave General Motors and Chrysler in negotiations earlier this year, including cuts to some benefits and time off.

Lewenza says Ford has agreed to keep 10 per cent of its total North American manufacturing in Canada. This is down slightly from the current level of 13 per cent.

Ford has said all along that it intends to close its St. Thomas plant in 2011 due to declining demand for the full-sized cars it builds there.

[Source: The Toronto Star]