Auto Workers Approve New Collective Agreement with Ford

Another Pay-the-Rich Scheme to Restructure
the Auto Industry


Autoworkers rally in Oshawa following announcement that GM was planning to close the Oshawa assembly plant, November 26, 2018, calling for the company to reverse its decision.

On September 28, auto workers employed by Ford Motor Company voted 81 per cent in favour of a three-year collective agreement covering the company's plants in Windsor and Oakville. It is clear that the goal of the Ford monopoly in signing the new collective agreement with Unifor is to ensure that the production of automobiles in Canada remains "business as usual." In this case it means continuing to receive vast amounts of state funds to finance its operations. It also means further integrating the Canadian economy into the U.S. imperialist war economy.

This method has been in place for more than 50 years since the signing of the Auto Pact by the Pearson Liberals. Despite never-ending profits for the three main monopolies, recurring crises and insecurity for auto workers and the communities in which the plants are located is a constant because the Canadian economy is neither independent nor geared to ensuring the well-being of the working people. In addition to domination by North American monopolies through the Canada-United States-Mexico Agreement, the auto industry is also subject to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Canada-Korea Free Trade Agreement and the Canada-European Union Comprehensive Economic and Trade Agreement. 

The investment by Ford, more than a quarter of which will be covered by government pay-the-rich schemes, is intended to position Ford in the production of battery electric vehicles (BEVs), ahead of its competitors in Japan, China and Europe, as well as Tesla. It will not address the problem of job security for auto workers or of the need for an independent and self-reliant Canadian economy. 

The auto industry in Canada is much more than the five global auto monopolies -- Toyota, GM, Honda, Fiat-Chrysler and Ford -- which dominate the Canadian scene as the main builders of vehicles. Automotive parts suppliers operate more than 700 manufacturing plants in Canada. Of those a few are large Canadian suppliers that operate globally (e.g. Magna International, Linamar, Martinrea, Woodbridge, etc.). There are also Canadian subsidiaries of large Japanese, European and U.S. global suppliers as well as medium, small and single-establishment Canadian parts suppliers.[1]

The ongoing restructuring by the big three North American monopolies, especially since the 2008-09 financial crisis, has resulted in many plant closures such as the closure of the GM plant in Oshawa as well as several other assembly plants in Michigan and Ohio. These closures also put in jeopardy the livelihoods of thousands of workers in the automotive parts industry which serves the entire Great Lakes Region where the auto industry has historically been concentrated.

In their negotiations with monopolies like Ford, workers keep in mind the objective conditions in which they find themselves and their past experience. One inescapable conclusion they draw when negotiations take place and deals are struck is that a leopard does not change its spots.

In these negotiations Ford openly said, "Pay us, be our partner, help us become competitive in the international market" and you will keep your jobs. This has led to more and more demands for concessions from workers and for more funds from governments as the auto monopolies keep upping the ante to make profits. As long as this arrangement continues, the problems of the industry and society cannot be solved.

Auto workers are confronted with the ongoing need to change the direction of the economy which is based on looking after the interests of the rich first. This cannot be the aim of a society which is capable of meeting the needs of its members.

Note

1. The Future of the Canadian Auto Industry, Canadian Centre for Policy Alternatives, 2019, p. 6.


This article was published in

Number 68 - October 8, 2020

Article Link:
Auto Workers Approve New Collective Agreement with Ford: Another Pay-the-Rich Scheme to Restructure the Auto Industry - Louis Lang


    

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