Magna and CAW sign historic deal

Magna International Inc. announced the signing of an historic agreement with the Canadian Auto Workers (CAW) that will usher in a new relationship between the two parties.

The Framework of Fairness Agreement (FFA) is a set of principles which establish the needs of workers and the needs of business to be competitive. The FFA represents a new labour model that aims to preserve the key components of Magna’s Fair Enterprise system, while ensuring proper checks and balances.

Frank Stronach, chairman of Magna’s Board of Directors stated: “The traditional, confrontational model of labour relations is unproductive and wastes energy that would be better focused on creating the conditions which would be fair to employees and would ensure that Magna remains competitive in the global automotive industry,” he said.

“Magna recognizes that the CAW has the ability to be an important ally in addressing the many competitive challenges our industry is facing, ensuring the needs of employees and society are balanced against the needs of our other stakeholders, namely customers, investors and other business partners. We are pleased that the CAW is willing to embark with us on this groundbreaking agreement.”

The FFA will be introduced to employees in Magna’s Canadian manufacturing divisions over a period of several years. Magna divisional employees will have the opportunity to vote on whether to approve a new contract under the terms of the FFA, and join the CAW.

If a majority of workers in a facility vote in favour, then that plant will be covered by a new Magna-CAW national collective agreement. Representation by the CAW, the national contract and subsequent changes negotiated to that national contract would be subject to approval through secret-ballot votes in each plant.