Ford Looks to Cut Canadian Labor

Ford F, the Detroit-based automotive giant, announced Wednesday that it will be reducing labor costs in Canada. As rival General Motors GM plans to cut pension costs depending on the results of a vote on Friday, Ford is looking to Detroit's neighbors just across the border for its own cost cutting. According to the Detroit News, the cuts are being made to ensure that Canadian factories can be considered for future products. An anonymous Ford source told the News that, "We're really looking at this round of negotiations as an opportunity to improve the competitiveness of the Canadian operations. Canada has higher labor costs than anywhere else we do business. It's not sustainable." Ford said that it's 4,500 assembly workers at the three Canadian factories earn $34 per hour base, compared with the U.S. base of $28 per hour. Ford says that it will work with the Canadian Auto Workers (CAW) during thr process, with CAW President Ken Lewenza saying that, "We have been meeting with all three companies and trying to define active costs. Where we're apart is because of the rising Canadian dollar. We don't have any control over that." Benzinga reported yesterday that the Australian unit of Ford is going to cut up to 440 jobs, cutting production by roughly 30 percent. On Wednesday, Ford traded at about $9.50, up roughly 1 percent. Follow me @BCallwood.