The Canadian Auto Workers union struck a tentative four-year deal with Ford on Monday, just hours ahead of a midnight strike deadline, though the clock was still ticking toward potential strikes at Chrysler and General Motors.
"It's a damn good deal in these economic times," said CAW president Ken Lewenza.
The agreement will give 800 laid off Ford employees the opportunity to get back to work, partially through the creation of 600 new jobs at its Canadian operations. Most of the new positions will be at its Oakville, Ont., assembly plant in two stages of hiring, he said.
There are no base wage increases during the life of the agreement, which lasts until September 2016, but each employee will receive $2,000 a year in the second, third and fourth years of the contract to cover cost of living increases, and a $3,000 ratification bonus.
The union will ask Chrysler and GM to accept the deal as a pattern settlement, though Lewenza said so far they had not.
That's not unusual at this stage, Lewenza said, but he noted Monday afternoon that they were still "miles" apart.
"If you look at the last proposal from Chrysler and General Motors the gap is so wide that quite frankly it's even hard to imagine," he said. "But if they come and say, 'We can work within the confines of that pattern agreement,' we can do the job real quickly."
Existing contracts at the three big automakers expired at one minute before midnight Monday, but if progress is being made, a call to the picket lines wasn't expected at the stroke of midnight, Lewenza said.
"That is the last tool in the bargaining toolbox," he said. "The minute we go out on strike I'm going to be able to look you in the eye and say we had no choice.
"So I say to Chrysler and GM respectively: Don't force us to use that last tool."
General Motors said after the announcement Monday that it is still committed to reaching a deal that will "improve GM Canada's competitive position for the future," but that it wouldn't comment on the deal with Ford. "Our efforts remain focused on working with the CAW to achieve an agreement that addresses the competitive needs of GM Canada."
Chrysler said it was not "presently offering any comment."
Lewenza said pattern bargaining - in which a deal is reached with one company that forms the basis for agreements at the others - is necessary because it removes wages from the number of competitive pressures the companies face.
"I think it helps Chrysler and General Motors today, now that they know the i's were dotted and the t's were crossed ... now that they know the tentative agreement has been signed, I believe they are looking at it," said Lewenza.
