"Ford continues to make progress on its transformation plan and our efforts to be competitive when it comes to labour costs are key to continuing to build a healthy, sustainable business in Canada for all our employees," Stacey Allerton Firth, Ford of Canada human resources vice president said in a release.
"It is a credit to the relationship we have with the CAW that we were able to reach a responsible agreement in such turbulent economic times. Both the union and the company realized that we had to work collaboratively to meet the competitive challenges facing the industry."
As part of the agreement, the St. Thomas Assembly Plant (STAP) will be closed starting 2011. The workers to be affected by the closure will be supported by a $30,000 vehicle voucher or $25,000 cash payment, extended health care benefits for six months and support the fired workers find new jobs.
"St. Thomas employees have proudly built high quality vehicles for many years and we thank them for their hard work and commitment. The unfortunate reality of today's global auto industry is that there is too much production capacity and we cannot afford to operate as many plants as we used to."
"Demand for large cars like the Crown Victoria, Grand Marquis and Town Car has also dropped significantly. We will do our best to support our employees through this difficult time," Allerton Firth concluded.
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