Ford announces cost-saving changes to CAW contract

    Employees support deal that delivers new products to Canadian plants

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    -  Competitive improvements to the national collective agreement with the
       CAW have been ratified by Ford employees. The contract modifications
       extend the agreement by one year to Sept. 17, 2012
    -  The agreement, which covers 7,000 employees in Canada, includes plans
       to produce a product based on a new global platform at the Oakville
       Assembly Complex and additional investment for the Essex Engine Plant
       in Windsor
    -  Major cost-saving measures in the agreement include; no base wage
       increase, eliminating the $1,700 annual "vacation bonus", a 40-hour
       reduction in paid time off, and the establishment of contributions to
       the pension plan for new employees
    -  Production at the St. Thomas Assembly Plant, near London, Ontario is
       scheduled to end in 2011 due to production overcapacity and declining
       market demand for large cars

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    Other major items in the agreement include:

    -  Plans to produce a product based on a new global platform at the
       Oakville Assembly Complex and additional investment for the Essex
       Engine Plant in Windsor

    -  No increase in base wage rates during the term of the agreement

    -  Newly-hired employees will be required to contribute $1 per hour
       worked into their pension plans

    -  The $1,700 "special payment" often referred to as the annual vacation
       bonus is eliminated

    -  A 40-hour reduction in paid time off will be implemented

    -  New employees will receive 70 per cent of the base wage rate when they
       start work. Their wages will increase to 100 per cent of the base wage
       rate over a six-year period