TORONTO — The Globe and Mail reports Ford of Canada won’t accept a concession agreement that mirrors the one accepted last month by General Motors of Canada.
The newspaper quotes a source as saying that Ford, which has not asked for a government bailout, feels the GM package doesn’t go far enough in slashing health-care and other so-called “legacy” costs for retired workers.
- Labrador retriever fetches top U.S. dog breed honor for record 28th year7 Pictures
- Oscars 2019: Red carpet looks and full list of winners36 Pictures
The source says if Ford were to accept the pattern set by the GM deal, it would cost the automaker $10 an hour more in labour to build a vehicle in Canada than in the United States.
Chrysler Canada has also demanded deeper concessions than those in the GM deal, in its negotiations with the Canadian Auto Workers.
GM and Chrysler have been told they must make deeper cuts in their restructuring plans in order to qualify for emergency loans from the federal and Ontario governments.
Talks between the CAW and Ford of Canada are expected to begin soon.