Ford wants government help By GREG KEENAN, SIMON TUCK
From Thursday's Globe and Mail Toronto and Ottawa — Ford Motor Co. of Can Ltd. is preparing to go to the federal and Ontario governments in a matter of weeks to seek financial help for its plan to redevelop its Oakville, Ont., operations, which would help secure at least 3,000 jobs and perhaps create thousands more. Industry sources said the company's parent, Ford Motor Co., has allocated two new sport utility vehicles to Oakville in the 2006-07 time frame and hopes to turn the plant into its first Canadian flexible facility. Such a move would transform the operation into a leading-edge plant that would be able to react more quickly to the rapid changes in automotive tastes. The auto maker is likely to ask for about $200-million of a total $1-billion cost to redevelop its Oakville facilities, according to sources familiar with the auto maker's plans, who described the investment as Canada's to lose. Ford Canada president Alain Batty "is holding Canada's feet to the fire," said one industry source. "Do you want the jobs or don't you?" The Ford plan is regarded as critical to the auto industry's future in Canada because sufficient support from governments would be a signal that they are willing to offer enough financial assistance to entice auto makers to continue investing here. It takes on added importance because another project earmarked for Canada disappeared last year when Daimler Chrysler AG decided not to go ahead with a flexible plant in Windsor, Ont. Daimler Chrysler sought more than $300-million from governments and was offered what appeared to be sufficient financing, but walked away because of market struggles and cancellation of the vehicle program slated for the plant. The Canadian Auto Workers union and senior parts industry executives have urged Ottawa and Ontario to offer money to compete with Alabama, Mississippi and other southern states that have lured auto makers with hundreds of millions of dollars in incentives in recent years. Ford's original plan for the two SUVs--code-named U387 and U388--was to assemble them at a plant in Atlanta, but they were shifted to Oakville, then back to Atlanta and now again to Oakville amid a continuous reassessment of the company's future product programs. The sources cautioned that plans could change again. It now appears, one industry source said, that Ford has decided that it has enough new vehicles under development to give Atlanta new work as well, instead of potentially closing that plant when production of the Ford Taurus and Mercury Sable mid-sized cars there ends later this decade. John Jelinek, Ford Canada's vice-president of public affairs, would not comment yesterday on timing or on new vehicle programs. "We are still working on advancing our business case," Mr. Jelinek said. "The ball is clearly in our court." Ontario Economic Development Minister Joe Cordiano said last week that he's optimistic about landing the Ford project, citing the province's advantages, such as a skilled work force and taxpayer-financed health care system. The project is "very important," said Mr. Cordiano, who added that he has toured the plant and met with Ford Canada officials. "There are significant jobs at stake there." Ford Canada is also anxious to meet with federal Industry Minister Lucienne Robillard and has spoken to federal government officials about the project but cabinet is preoccupied with the sponsorship scandal and the pending election. "We're aware that Ford is thinking along those lines," one source said. There's little doubt that Ford is beyond simply exploring the idea, this source said. "I get the feeling they're quite committed -- they have a fairly ambitious proposal." Flexible manufacturing involves building multiple models off the same vehicle chassis -- or basic underpinning of a vehicle. Auto makers are turning existing factories into flexible plants or building new flexible operations so that they can shift more quickly to changing market trends. The concept also allows them to adjust to one of the emerging realities in the North American market, which is the fragmentation of traditional passenger car and truck segments into dozens of smaller segments such as car-based SUVs that combine the ride of a car with the utility of an SUV and sport utility trucks that are essentially SUVs with a pickup truck box. The vehicles headed for the company's Oakville Assembly Plant -- which now makes Ford Freestar and Mercury Monterey minivans -- are so-called crossover utility vehicles. The possibility of the investment at the site arose first in 2002 when the CAW agreed not to go on strike to try to block the shutdown of the neighboring Ontario Truck Plant in return for the company agreeing to consider a flexible plant in Canada. If the Oakville proposal goes ahead and Ford duplicates what it's doing at a plant in Chicago, it could create a supplier park for parts makers near the assembly plant, which would mean hundreds, perhaps thousands, of new jobs. The following is an e-mail we received concerning this article the writer wishes to remain anonymous for now.
Gary,
I agree that the Ford Oakville letter is an interesting one.
However, it is also a flexible concept that is under a lot of criticism
from members within CAW.
The criticism comes from the fact that there maybe thousands of jobs,
but they are not Ford jobs they are parts supplier's jobs.
In this flexible system outside suppliers come right into the Ford
Oakville Plant and install whatever they make for the vehicle. They do not
just deliver the parts to our doorstep and then our CAW Brothers and
Sisters install the parts.
They want to build modular frames and bodies so that if one plant has
a labour dispute the work is quickly shifted to another location. This
eliminates all bargaining strength away from the CAW unless they were to
shut everything down. How do you shutdown a right to work state plant,
like Alabama, or try to shutdown China, Japan, Germany etc. ? This ability
to quickly shift product is a scary one.
The Skilled Trades are all combined into two classifications,
Mechanical and Electrical with about 6 to 9 trades workers operating a
plant the size of the East Side of the Components Plant.
Yes, there are jobs related to this work, if the Government throws in
some money. 95% of them will be non Union and the others will be working 7
days a week 12 to 16 hours a day. Be careful when you judge a book by its
cover.
We all want jobs. However, I'm sure that these part suppliers coming
into Ford Oakville to perform work would like to make our Production rate
of $30 an hour plus benefits instead of $12 an hour an no or very little
benefits.
Once again this is all about the bottom line, and that is making
money. Ford shuts down a quality and profitable plant, then goes out an
asks the Government to invest in a new plant. This isn't about producing a
new model for Ford this is about producing a new model for Ford with non
Union workers at a third of the cost.
Just thought I would add what little bit of this I am aware of. Sure
puts a different spin on it, eh!
It sure does We responded to this knowledgeable writer and asked if he would do a more in depth article on this situation and comment on the workforce aging with a need for young unionists. His reply is as follows.
Gary,
I wouldn't mind doing an article on Ford in Oakville. However, I
would like a little more time, as I will use this time to contact some
Skilled Trades Leadership in Oakville to get the first hand goods on what
the real story is. I've heard bits and pieces, because even our own
National Union is a little quiet on this issue. It seems they have become
just a little more than a dues collection agency. I'm not saying we have a
bad Union, there are many who are a lot worse.
However, when you are torn apart on so many issues, all at the same
time you tend to concentrate on jobs as an income and not the quality of
life attached to those jobs.
It is the same in our plants. Our Leadership is torn in so many
different directions, you become exhausted very quickly. When you become
tired, you become weak, when you become weak you become vulnerable. This
is why support of our members is so vital.
If our members would allow their leadership to concentrate a large
portion of their day to addressing the important issues instead of dealing
with a large number of small problems we would all be better off. Why
should the Union have to correct someone's pay cheque? Why should the Union
have to tell management that someone is off and they need to fill a hole on
that shift? etc. etc.
If we could have our members demand their Supervisors do their jobs
and correct these things, we could be in meetings fighting for new work,
more manpower and creating ways to employ laid off workers.
We see elections like we have going on right now, blaming the Plant
Chairperson for not getting things during negotiations. Well let me tell
everyone, I've been at three sets of negotiations and I don't care if it is
the Plant Chairperson heading up negotiations as in 1993, 1996, 2002 or the
President that headed up negotiations in 1999 they did not go there alone.
They are only one vote and the entire Committee works their asses off
trying to get everything humanly possible for our members. Nobody goes to
negotiations trying to get rid of jobs or trying to make things worse for
our members.
Our members are very demanding and want what they want and they want
it yesterday. GM is a giant corporation and trying to move them in a
certain direction is like turning a ship around in side the Welland Canal.
We try are very best, leave work many days with our stomachs in knots and
wondering what tomorrow will bring. But most of us love what we do, and
that is, trying to make a difference for working people in a very difficult
environment.
We are under the constant threat of moving the work to another
location that will do the same work cheaper and faster and it is our job to
know when the Company is bluffing or when they are really going to fold the
cards.
I might be referred to as one of the old guard, I don't feel old but
I guess experience makes one considered old. I have always tried to
educate younger members on all the issues. As far as Port Elgin, this
education center might get the juices flowing but it doesn't give you the
knowledge or experience needed to be a good leader.
If we could get a large majority of our members to see the big
picture, of how the company wants and develops control we would be much
better off. We would know how to fight back and demand our dignity and
respect and yes, our jobs!
i.e. Workers are complaining that they have to use vacation time to
get a pass home or to miss a day of work. Yet these same workers line up
to get a free lunch from the company because they all put in a suggestion
and they are part of a team.
Wake - up they are being controlled. Everyone needs to put in a
suggestion or we don't get a free lunch. This means that once the company
gets close to 100% participation on these suggestions they intimidate the
few workers who did not want to put in a suggestion, by telling them they
are the reason all the other people are not going to get their free lunch.
Most of these workers make 80 to 100 thousand dollars a year and are
falling victim to the company's agenda for a five dollar free lunch.
We should be telling this company to stick their suggestion program
up you know where, and we will start participating when we can have a
personal pass or a day off without eating up my vacation time that I want
in order to be with my family.
Part of a team, I think not. Ask your Supervisor if he has to use
vacation time to go to the Dentist, Doctor, person pass or take a day off.
Ask them if they get disciplined for being late or missing too much time.
You will find that they can come in when they want, leave when they want
and not use any vacation time due to the fact that their punch cards do not
actually register a time. Not only can that take all this time off, they
get paid. You are merely asking for a personal pass with no pay and you
are being asked to use your vacation time!
If we could get our members to open their eyes, and see the big
picture, we could gain the control, and put it back in the hands of the
workers where it truly belongs!
Sorry if I rambled on, time to get back to some other work.
Good insight thanks! | 
