Unifor National President Jerry Dias accompanied by members of Ford, Fiat Chrysler bargaining committee holds a press conference regarding the on going CAW talks in Toronto on Thursday, August 11, 2016.Nathan Denette/The Canadian Press
The union representing Canadian auto workers said it was encouraged by contract talks with Ford Motor Co. of Canada and Fiat Chrysler Canada on Thursday.
As Unifor entered the second day of formal negotiations in a bargaining process that is expected to last months, the union continued to focus much of its attention on the need to secure new products for plants.
But union president Jerry Dias noted what he called a promising difference in tone from the previous day's talks with General Motors of Canada Ltd.
"Though we have similar challenges with Ford and Fiat Chrysler, they understand that investment decisions are going to be a part of 2016 negotiations," he said at a news conference after contract talks at the Sheraton Centre in Toronto. And while Ford and Fiat Chrysler have yet to commit to further products or investments, Mr. Dias said the companies are not refusing to negotiate investment discussions.
"We are clearly in a different position than General Motors as it pertains to expectations," Mr. Dias said.
GM Canada has repeatedly said it will make investment decisions only upon successful completion of contract negotiations. Unifor, on the other hand, has said there will be no successful completion of negotiations with GM until there has been a commitment to new products for its plants in Oshawa, Ont., and St. Catharines, Ont.
In talks with Ford, the focus was on securing investment for its engine plants in Windsor, Ont. The auto maker does not have a new engine slated for the plants, which currently produce the 6.8-litre V10 engine and the 5.0-litre V8 engine. While Ford has invested heavily in its Oakville plant, the Windsor engine plant is viewed by Unifor as being most at risk. In 2014, Windsor lost out to Mexico for a small-engine contract that would have created 1,000 jobs.
"Ford understands there won't be an agreement until there's a solution to the engine plant, and they understand that's a priority," Mr. Dias said.
Steve Majer, Ford Canada's vice-president of human resources, said global competition is a major concern.
"There's a great work force, a lot of talent, terrific education system, but, to be quite frank, there isn't a productivity edge in this day and age as there once was," he said, stressing the need to ensure Ford is working "smarter" in all locations, promoting quality with responsible cost infrastructure and continued investment.
When asked whether Ford was open to guaranteeing an investment prior to the end of negotiations, Mr. Majer was more open.
"We're committed to finding a solution," he said. "We're going to work collaboratively to try and find solutions for Ford of Canada, and develop a made-in-Canada solution specific to Ford Motor Company and the men and women represented by Unifor."
The separate meetings with the two auto makers took place on the second day of negotiations between the auto makers and Unifor, Canada's largest private-sector union, which represents about 23,000 workers at GM, Ford Motor Co. of Canada Ltd. and Fiat Chrysler Canada. Existing contracts with the three auto makers expire on Sept. 19.
After speaking with Ford, Unifor met with Fiat Chysler Canada, where its main focus was investments in the auto maker's Brampton assembly plant, which produces the Chrysler 300, Dodge Charger and Dodge Challenger and employs 3,300 workers. The plant has one of the auto maker's oldest paint shops and is in heavy need of new investment, said Dino Chiodo, Unifor's master bargaining committee chair for Fiat Chrysler.
After negotiations, James Dyckman, employee relations director for Fiat Chrysler Canada, reiterated the sense of optimism going into negotiations and the history of working collaboratively with Unifor.
"As we head into these negotiations, we look forward to continuing that partnership while reaching a labour agreement that will sustain the company's competitiveness over the long term," a written statement from Fiat Chrysler Canada released on Thursday said.
Bargaining is expected to continue until the end of August and a pattern-bargaining target is expected to be chosen in early September. (Editorial, advertising and circulation employees of The Globe and Mail are also members of Unifor.)
Pattern bargaining is a collective-bargaining technique in which the union uses the precedent of one contract agreement as a model for others during labour negotiations. Unions focus on one company, establishing the pattern that will serve as a template for contracts with the other auto makers. Once a deal is reached with the first company, the focus will switch to the second company and then the last of the three. Unions choose the pattern target based on the criteria that they have prioritized, with new products being the clear focus this round.
While all parties say it's too early to speculate on which company will be chosen, Mr. Dias said "the decision on the target will be the company that has the longest-term strategic vision for Canada."