Ford, Chrysler say GM should get more out of CAW

Ford is projecting the strongest image of the Detroit 3 at the moment due to its refusal to seek government loans, but it says the deal General Motors and the CAW reached won't be good enough to keep Ford competitive in Canada. GM, on the other hand, seems pleased with its deal, and has announced it won't be needing $2 billion in funds it requested earlier this year.

Chrysler is also not happy with the terms of GM's CAW bargain, going so far as to talk of ceasing all Canadian operations if it can't get a better deal with the union.

Ford's group VP for labor affairs, Joe Hinrichs, said, "We believe the recently negotiated agreement between General Motors Canada and the Canadian Auto Workers will not keep Ford's Canadian operations competitive in today's global economy." That blunt statement of fact means the Blue Oval will have to persuade the CAW of more favorable terms.

That might not be an impossible task, however, given the newly renegotiated terms Ford won with the UAW this week, cutting labor costs to about $55 per hour, enough to save about $500 million each year. Getting similar savings out of the Canadian unions will still be tough, however, given that their current labor costs are right around the same mark - C$70, or about US$55 per hour.