Ford’s deal with the Canadian union is the second cost-cutting agreement between the two sides in 18 months and includes cuts in benefits, a reduction in vacation and breaktimes and higher healthcare costs for workers.
“No one should mistake workers’ approval as satisfaction with the new agreement,” CAW President Ken Lewenza said in a statement. “The problems faced by the industry cannot be resolved at the bargaining table.”
Ford, the only large U.S. automaker to avoid bankruptcy in 2009, posted losses totaling $30 billion from 2006 through 2008 and remains saddled with a much heavier debt load than GM or Chrysler following their bankruptcy reorganizations.
Still, Ford has been seen as in much better shape than its U.S. rivals in its finances and product lineup. Ford has cut thousands of salaried and hourly workers in restructuring over the past four years, but maintained its product cycle.
Analysts on average expect Ford to report a narrower loss in the third quarter from its continuing operations that exclude one-time items.
via Ford suffers UAW setback, Canadian workers OK cuts | Reuters .
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