Ford Canada’s labour costs highest in world

Hourly labour costs at Ford Motor Co. of Canada Ltd. (F-N6.84-0.13-1.87%) manufacturing operations are about $16 (U.S.) higher than similar costs at U.S. plants, sources close to the negotiations between the auto maker and the Canadian Auto Workers union said Friday.

Ford’s labour costs in Canada are higher than those anywhere else in the world, the sources said, meaning it’s difficult to make new investment commitments for its operations, such as the new products the CAW is seeking for a plant in St. Thomas, Ont., that is at the top of the endangered list.

“The hyper-competitive nature of this business globally means you just cannot be the highest-cost labour jurisdiction on the planet and expect those kinds of guarantees,” one source familiar with the discussions said.
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