“If we make sacrifices, we want assurances we’ll keep jobs,” – Ken Lewenza

ford plant

When Ken Lewenza took over the presidency of the Canadian Auto Workers a year ago he knew he wasn’t in for an easy ride. But he didn’t know his union would shed 25,000 members in a year because of the economic crisis and the near collapse of the Canadian auto sector.

As he was re-elected Thursday for a three-year mandate at the head of the country’s largest private-sector union, Lewenza warned the worst is likely not over.

He noted the CAW is preoccupied with the reductions and job losses at the Ford Windsor, Ont. plant, the St. Thomas, Ont. plant — which is subject to close in 2011 — and the Oakville, Ont. plant that is not operating at full speed.

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Future of Ford’s St. Thomas Assembly Plant rests on talks

The fate of Ford of Canada’s St. Thomas assembly plant may not be known until after the automaker has completed its contract talks with the Canadian Auto Workers union, industry observers said yesterday.

Ford will not announce a plant closure, or what it will take to land a new vehicle, while it is seeking a concessionary collective agreement from the union.

“They are in the middle of labour negotiations and you do not announce plant closures in the middle of negotiations,” said automotive analyst Dennis DesRosiers.

Tony Faria, business professor at the University of Windsor and an industry analyst, agreed nothing will be decided until talks are completed, but those talks may give the plant a chance for a new lease on life — as long as the federal and provincial governments also pledge financial support to retool the plant, he said.

“The St. Thomas plant will be used as a bargaining tool, in one fashion or another,” to wrestle concessions from the union and money from government. “It serves Ford’s purpose in the short term to not announce a closing now.”
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Lear Corp. preparing to file for bankruptcy

Automotive parts supplier Lear Corp. (LEA-N0.48-0.02-4.00%)said yesterday that it is preparing to file for Chapter 11 bankruptcy protection and has lined up financing to fund its operations while under court protection.

Lear, which makes automotive seating systems and electronics, said it is still negotiating with lenders and bondholders for additional support for its restructuring plan. In the meantime, the company said it has a commitment for $500-million in loans to finance its bankruptcy from a group of lenders, led by JPMorgan Chase & Co. and Citigroup Inc.

Lear operates three plants in Ontario, including seat-making operations in Whitby and St. Thomas that supply General Motors Corp. and Ford Motor Co. respectively. A third plant in Kitchener manufactures seat components.

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CAW in difficult negotiations with two companies, Ford talks could start soon

TORONTO — With some workers set to go on strike, others trying to reach an agreement after their contract has expired and still others set to enter a gruelling set of negotiations, the Canadian Auto Workers won’t be taking a summer holiday any time soon.

About 250 members of the union could be on strike as early as Wednesday morning if they’re unable to reach a deal with their employer, a division of heavy-equipment dealer Toromont Industries Ltd. (TSX:TIH).

Meanwhile, a CAW contract with Navistar has expired without a new agreement and the two sides have ceased negotiations for the time being.
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Future of St. Thomas Assembly Plant – CAW to press Ford on staying in Canada

The Canadian Auto Workers union will insist that Ford Motor Co. maintain its current manufacturing footprint in Canada as part of negotiations about helping the auto maker cut its costs here, CAW president Ken Lewenza says.

“We’re not going to go into early bargaining just because GM and Chrysler went into it,” Mr. Lewenza said yesterday. “We’ve got to get something in return and the only thing you get in return at this particular time is a commitment to product and that’s exactly what we’re going to work on.”

The Canadian manufacturing operations of Ford represent about 13 to 14 per cent of its North American manufacturing, he said.
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Lessons to be learned from jump-starting an American car town

kokomo_210
Thanks to Julie Leeds for the wonderful heads up on this. Instead of Chrysler, substitute Ford and the location is not Kokomo, Indiana but instead St. Thomas, Ontario. However the comparisons, challenges and high stakes mirror each other …

Reviving an American car town has got to be one of the toughest jobs in the country. It may also be one of the most important.
In Kokomo, Ind., ground zero for auto industry layoffs, this job falls on Jeb Conrad.
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Ford needs its own deal with the union — urgently

For Ford, which has not asked for government loans, legacy costs are the main target in its effort to keep building vehicles at its two Ontario plants in Oakville and St.Thomas.
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Why the North American auto industry is in trouble

From Richard Patton
This is a video of a new Ford plant in Brazil.
Talk about “just in time” inventory controls.
No wonder the North American auto industry is in big trouble.
One look at this and you will be able to tell why there will probably never be another one built
in the USA or Canada.
It will also point out why more assembly plants will go offshore.
View video
Pay attention to the last few words. It says a lot!