Mark Collins – Ontario Autos: Union Deals Made–Time for Fed Funding for Bombardier?

Further to this post (note likely federal auto subsidies coming at 2)–Ontario provincial money pretty much a dead cert too),

Why Delay in Canadian Federal Funding for Bombardier? Ontario Auto Sector

now that union contracts have been signed with GM, Fiat Chrysler and Ford–each with pledges of substantial new investments by each company, a significant proportion of which will inevitably be underwritten by the federal and provincial governments—the coast is clear for Ottawa finally to make a deal to provide oodles of cash to Bombardier without fear of accusations that it allowed large parts of the Ontario auto sector to go down the tubes whilst favouring a Quebec-based company. The auto latest:

Unifor members approve new four-year labour agreement with Ford

Workers at Ford Motor Co. of Canada Ltd. have approved a new contract with the company, wrapping up 2016 contract negotiations between Unifor and the Canadian units of the Detroit Three auto makers.

Unifor members who work at Ontario plants in Oakville, Windsor, and a parts depot in Brampton, ratified the four-year agreement, with 58 per cent of those who voted giving it a thumbs up.

The Ford agreement calls for the auto maker to invest $713-million in the Canadian operations during the next four years.

Workers will receive $12,000 in bonuses and lump-sum payments during the four years, while wages will rise 2 per cent in the first year of the deal and 2 per cent in the fourth year.

But the key to the Ford deal for the union was new investment at engine facilities in Windsor, where the company has about 1,400 employees who work at two engine plants.

Ford agreed to spend $613-million in Windsor to prepare its Essex engine plant for a new, 7-litre engine. It also agreed to continue until 2020 to produce, at its Windsor engine plant, a 6.8-litre engine that was scheduled to go out of production.

Unifor won promises of $1.6-billion worth of new investment from Ford, Fiat Chrysler Automobiles NV and General Motors Co. in negotiations that began during the summer [how much of that money will eventually come from the two governments?].

The union’s key demand in the talks was investment that would keep plants that were on the endangered list from closing during the next four years [emphasis added]…

The earlier deals:

Fiat-Chrysler workers ratify four year contract deal
Workers vote to accept GM-Unifor deal

Some industries are more equal than others politically.

Mark Collins, a prolific Ottawa blogger, is a Fellow at the Canadian Global Affairs Institute; he tweets @Mark3Ds


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