Her We Go Again: Ford says CAW must narrow cost gap

Ford says CAW must narrow cost gap

Automotive News | October 2, 2009 – 2:46 pm EST

TORONTO (Reuters) — Ford Motor Co. says the Canadian Auto Workers must narrow a $16 an hour labor-cost gap with Ford’s U.S. operations or new investments in Canada will be hard to justify, a source close to cost cutting talks between the two sides told Reuters today.

The sharp drop in global auto sales has opened up a lot of excess capacity at Ford operations worldwide, and the company is under pressure to consolidate its manufacturing facilities into low-cost labor jurisdictions, said the source, who could not be named because of the sensitivity of the situation.

Ford says its Canadian operations are more expensive than any place the company does business on the planet, the source said. The CAW and Ford have been in cost-cutting negotiations since Sept. 8.

 

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