Canadian Ford Workers Agree To Cost-Cutting

Contract modifications include no increase in base wages, reduction in paid time off, bonus elimination and requirements that new employees contribute to pension plan.

OAKVILLE, Ontario (AP) -- Union workers at Ford Motor Co.'s Canadian division have backed a cost-cutting agreement that the Canadian Auto Workers reached with the automaker last week.

The contract modifications that cover 7,000 workers include no increase in base wages, a reduction in paid time off, elimination of a bonus and requirements that new employees contribute to the pension plan.

Production will also end at the company's St. Thomas Assembly plant near London, Ontario. The plant, which makes the Ford Crown Victoria, Grand Marquis and the Lincoln Town Car, is slated to shut due to the drop in demand for larger vehicles, Ford said. Workers at the plant will be eligible for a voucher for a new vehicle or a cash payment.

Ford said the agreement includes plans to build a new "global platform" at its Oakville Assembly Complex and increased investment at its Essex Engine Plant in Windsor.

The ratification by Canadian Ford workers comes as United Auto Workers in the United States appear to have rejected contract changes that would have allowed the automaker to cut labor costs.

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