HIGHLIGHTS OF THE TENTATIVE AGREEMENT BETWEEN CAW-CANADA AND FORD OF CANADA

CAW-CANADA/FORD OF CANADAB A R G A I N I N G R E P O R T

PRODUCTION AND SKILLED TRADES OCTOBER, 2002

Continued on Page 11

A Brighter Futurefor Ford Workers

HighlightsWage Increases

Improved COLA

New Investment: 900 Jobs Saved

Increased Time Off Work

Improved Healthcare Benefits

Skilled Trades Gains

Signing Bonus

Increased Retirement Incentive

President’s MessageI’VE BEEN A trade unionist for virtually all my adult life, and the leader ofthe CAW for a decade. But there are still times when I am incrediblyinspired to be a part of our great movement. Our 2002 bargaining withFord Motor Co. provided one of those moments.

As we opened negotiations, the future of all Ford workers weighedheavily on my mind, especially the Oakville members and their families.

As you know, Ford has encountered some tough financial times. OnJanuary 11 Ford announced a continent-wide restructuring plan. They

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Message from Jim O’Neil, Secretary-Treasurer

WE CAME INTO 2002 bargaining committed to finding asolution for members facing a closure at the Ontario TruckPlant. And we made solid gains in this area by securing acommitment to 900 jobs, a revitalization plan andenhanced income protection. We demonstrated how welook out for each other in tough times – and that is whatour union is all about.

This tentative agreement also makes substantial gainsfor the security and future of CAW Ford members, andtakes major steps forward for members’ quality of life.

This contract contains impressive wage gains andimproves benefits, ensuring that the wealth of the autoindustry is shared with workers and the community. Duringthese trying times CAW Ford members have continued todeliver top-notch quality and productivity to the company,and deserve to share in that success. With wage increasesincluding COLA averaging 4.5% per year, our memberswill share in a rising standard of living.

We work tirelessly on several fronts to protect jobs, butour experience over many years tells us that we cannotentirely stop companies from closing plants or sheddingjobs. We can, however, ensure that you and your family areprotected. This agreement means that you now have evenbetter protection through income security programs. Theretiring allowance and incentive for plant closing, restruc-turing and other indefinite layoffs has been increased. Andimproving these programs also gives the company morereason to think twice before trying to shed jobs.

The economic benefits of this agreement are impressiveby any measure. But this tentative agreement also makes

gains that are important for ourcommunities. The new 28hours of annual paid time offnot only delivers a better qualityof life for Ford members, butalso creates more than 200good jobs.

As a union we have foughtagainst cuts to medicare. Andwhile governments continue todebate the future of this vital program, we achieved animportant step by getting Ford to join us in calling on theCanadian government to strengthen and expand ourpublic health care system. This agreement also makes gainsin health care benefits, such as improved in-home nursingand new coverage for homemaking services.

Other gains will certainly help with the householdbudget, particularly improvements to childcare andscholarships. This agreement increases the childcarebenefit to $12 per day, and expands coverage to childrenages eight and under, which nearly doubles the number ofchildren eligible for the benefit. And improving thedependent scholarships to $1,300 per year will help makepost-secondary education more accessible.

I am pleased to join with Buzz Hargrove, Alex Keeney,and the rest of the Ford-Master Bargaining Committee inrecommending your ratification of our 2002 tentativeagreement.Jim O’NeilCAW National Secretary-Treasurer

Message from Alex Keeney, Chairperson,CAW/Ford Master Bargaining Committee

FIGHTING BACK MAKES adifference. That’s the slogan ofthe CAW. And we proved onceagain that it is true, during our2002 bargaining with Ford.

We knew that bargainingwould be a tough challenge this year. We had to ensure thatFord matched all elements of the pattern agreementnegotiated last month by CAW members at General Motors.We faced the special challenge of protecting jobs inOakville, threatened by the closure of the Ontario TruckPlant. And we had to make progress in all our local andsub-committee bargaining.

I’m incredibly proud to report that we achieved all threeof these goals. I offer my sincere thanks to Mike Shields,chair of the CAW-GM Master Bargaining Committee, andhis committee members, for negotiating the first-classpattern agreement that is described in this brochure. Andthanks to the unity of our bargaining committees andsolidarity of our members at all Ford locations, Ford wasnever even tempted to resist the economic pattern.

Our achievement in protecting 900 jobs at Oakville, and

winning Ford’s support to revitalize the whole Oakvillecomplex, if we achieve government support, is a victory thatwill benefit thousands of our members and their familiesfor years to come and will create more job opportunities.Even more important, we proved to all workers that we donot have to be passive victims in the face of corporaterestructuring. We proved that if we stand together, workerscan win incredible things – even from powerful globalcorporations like Ford. We proved that fighting back makesa difference.

It was an incredible pleasure to work with the team ofexperienced, dedicated CAW local, national union andmaster bargainers who crafted this very exciting tentativeagreement. They came together in a tremendous teameffort, and we have made historic progress for our membersas a result.

I thank you for your support and solidarity, and I joinwith the entire Master Bargaining Committee in unani-mously recommending this tentative agreement for yourratification.Alex Keeney, President, CAW Local 200Chair, CAW-Ford Master Bargaining Committee

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Wage and COLA Increases

Base Rate Changes

Wage and COLA Summary

ASSEMBLER TRADES

CURRENT EARNINGS $27.695 $33.115Includes $1.51 COLA Includes $1.51 COLA

Ist Year IncreaseBASE $ 0.785 $1.09COLA $ 0.53 $0.53

End of 1st Year $29.01 $34.735

2nd Year IncreaseBASE $ 0.855 $1.025COLA $ 0.54 $0.54

End of 2nd Year $30.405 $36.30

3rd Year InreaseBASE $ 0.585 $0.705COLA $ 0.41 $0.41

End of 3rd Year $31.40 $37.415

TOTAL INCREASESBASE $ 2.225 $2.82COLA $ 1.48 $1.48

$ 3.705 $4.30

CHANGE ASSEMBLER CHANGE TRADES

CURRENT BASE RATE $26.185 $31.605 AIF Year 1 $0.785 $1.09COLA Fold-In $1.46 $1.46BASE YEAR 1 $28.430 $34.155AIF Year 2 $0.855 $1.025BASE YEAR 2 $29.285 $35.18AIF Year 3 $0.585 $0.705BASE YEAR 3 $29.870 $35.885

I WAGE INCREASES AVERAGE 4.5% PER YEAR(including COLA)

I 3% / 3% / 2%I COLA FORMULA IMPROVEDI ASSUMES INFLATION OF 2%, 2%, 2%I Special Trades Adjustment of $0.14

ASSEMBLER TRADES

1st Year Increase $1.315 $1.622nd Year Increase $1.395 $1.5653rd Year Increase $ .995 $1.115TOTAL $3.705 $4.30

Wages

SIGNING BONUSAll full time employees who performed workbetween January 3, 2002 and September 17,

2002 will receive a $1,000 Signing Bonus

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The Legal Services Plan has been improved as follows:I Family Law coverage increased from 8 to 10 prepaid hoursI A new benefit of prepaid coverage will now be provided to appeal the

suspension of a driver’s license for medical reasonsI Estate litigation coverage will be increased from 2 to 4 prepaid hours for

claims greater than $3,000I Administrative Law benefits have been changed to a $3,000 threshold;

2 prepaid hours for claims of $3,000 or less; 30 prepaid hours for claimsgreater than $3,000

I Criminal Law coverage has been increased from 1 to 2 prepaid hours

Legal Services Plan

Progress on Work StandardsTHE CHANGES SECURED in both the master and the localagreements continue the progress we have achieved onproduction standards. In this round the committee focused onbetter work allocation planning, increased stability, moreeffective containment plans and improved consultation anddiscussion. The agreement now includes: I containment plans for In Line Vehicle Sequencing (ILVS)I a process to review changes to walk times and codesI meetings during rebalancing to focus on creating stability in

affected areas and reducing the work allocation periodI language on pilot units and try-outsI commitments to include tracking of unassigned elements,

containment plans and facility and engineering changes

Recommendation

The CAW/Ford master bargaining committee has nego-tiated a tentative agreement that provides for wageincreases in each year of the agreement, increased timeoff the job, greater income and job security, health carebenefit gains and much more.

Your Master Bargaining Committee and all localbargaining committees unanimously recommend thistentative agreement and urge you to vote in favour of it.

An Auto Strategy for CanadaAS PART OF the 2002 pattern bargaining, the CAW and Fordsigned a joint letter calling on the federal and provincialgovernments to develop a new auto policy. Canada’s autoindustry has been hammered in the last two years by a flood ofoffshore imports to North America, and the migration of newplants to locations such as Alabama and Mississippi. In 1999 wewere the 4th largest auto producer in the world; today we are 7th,and falling fast.

The CAW has led the call for a new government policy toreplace the Auto Pact, which was abolished following a decisionby the World Trade Organization. The union has been pressinggovernments to develop new policies to reward automakers whoinvest and produce in Canada, while imposing penalties onoffshore companies who sell into our markets but don’t createany jobs here.

Our call for a new auto policy has been supported by manyauto parts companies in Canada and by many auto industryexperts, who know that we need to attract new investment toCanada or else their business will suffer. Now Ford has signed thejoint letter, and the pressure is building on government to comeup with this new policy.

Resolve to the Ontario Truck Plant Closure

FORD’S PLAN TO close the Ontario Truck Plant (OTP) inOakville in late 2003 or early 2004 was a crucial challengein our bargaining this year. Agreement highlights:I Ford will invest $600 million in Oakville in a new

generation Windstar minivan to launch in the thirdquarter 2003.

I Ford commits to producing a new high-content Mercuryversion of the Windstar in Oakville.

I Ford continues F-series production at the OTP until July2004.

I Following the 3-week summer shutdown, 900 jobs aretransferred from OTP to the Windstar plant, to begintraining for a third shift.

I Ford commits to maintaining Oakville hourly employ-ment at approximately 4100 (the existing 3200 Windstarjobs, plus the 900 transferred positions, not countingnormal efficiency gains) to at least the end of ourcontract in September 2005.

I In the event that market demand is insufficient tosupport regular production schedules, they will beadjusted so as to provide special eligibility for automaticShort Work Week Benefits.

I The agreement runs until September 20, 2005.

I Ford announced a long-term vision involving thecomplete reconstruction of Oakville (beginning in2006) to feature a new flexible manufacturing assemblyplant (capacity to produce multiple models frommultiple platforms), and possibly including a supplierpark.

$60,000 early retirement incentive packages will be offeredup to 500 senior CAW members throughout the Oakvillecomplex. If enough members accept these packages, theentire transition would occur without a single involuntarylay-off.

Job Security at All LocationsI Letter preventing sale or closure of any plant continues

to apply (including the Nemak plants in Windsor, whereCAW members remain Ford employees covered by allaspects of the Master Agreement).

I Our existing protection against outsourcing applies atall locations.

I Ford will maintain community employment levels inWindsor, St. Thomas and Bramalea, and specified theirproduct and work plans for each location.

I Ford provided a special additional letter concerningtheir long-run product plans for St. Thomas.

I The Oakville site job security letter protects 4,100 jobs.

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Retirements with Benefits Payable Beginning on or after 10/1/02

October/02 to October/03 to October/04 toSeptember/03 September/04 September/05

AssemblerBasic $ 57.80 $ 58.90 $ 60.0030 and Out $2,970.00 $3,030.00 $3,100.00

TradesBasic $ 66.50 $ 68.25 $ 70.0030 and Out $3,225.00 $3,300.00 $3,370.00

IN 1999 we negotiated a six year pension program whichfeatured substantial immediate increases in both the Basicand 30 and out retirement rates. The new pension planalso extended the 30 and out benefit to age 65, improvedsurvivor benefits, provided for significant increases for theskilled trades to more closely reflect wage differentials,increased and then indexed the benefits for pre-October1987 retirees, increased benefits for October 1987-Sep-

tember 1993 retirees, and improved other early retirementfeatures.

Since 1999, all retired employees and surviving spouseshave had annual adjustments to their pensions to com-pensate for inflation.

The following table shows the pension benefit rateswhich will be in effect for new retirees over the next threeyears:

Pension Plan Example

Pension Update

The pensions of all current retirees and surviving spouses are indexed, withincreases scheduled for October 1, 2002, October 1, 2003 and October 1, 2004

30-N-OUT PENSION WITH EARLY CPP $3,522/month

PENSION IN HOURLY WAGE $20.32

NEW HOURLY WAGE $28.480

EI/CPP PREMIUMS -$ 1.22

NET HOURLY WAGE $27.260 $27.260

NET WAGE VS RETIREMENT $ 6.94

PENSION VS WAGES, ASSEMBLER, AGE 60 TO 65

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Benefits, Trades October 1, 2002

BASIC $1,995

SUPPLEMENT $540

SPECIAL ALLOWANCE $690

TOTAL $3,225

WITH EARLY CPP ($552) $3,777

Benefits, Assembler October 1, 2002

BASIC $1,734

SUPPLEMENT $540

SPECIAL ALLOWANCE $696

TOTAL $2,970

WITH EARLY CPP ($552) $3,522

The union has negotiated a voluntary group RRSP andsavings plan for hourly employees, to be implementedno later than July 1, 2003. The plan will allow workers to:I arrange for weekly contributions by payroll

deduction (minimum $10/week)I choose from, and transfer between a series of invest-

ment optionsI include a spousal RRSP optionI transfer funds in from other plansI set-up a locked-in retirement accountI deposit their vacation bonusThe company is responsible for the administration feesof the plan.

Group RRSP and Savings Plan

Example, 30-n-out at Age 60, October, 2002

Pension Plan Example

BENEFITS, ASSEMBLER, TRADES

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Job and Income Security Program

Special SUBWE HAVE NEGOTIATED a new program ofSpecial SUB which will be applicable to seniorityemployees currently on layoff who haveexhausted or will exhaust their income securitybenefits ( i.e. SUB and/or IMP ) during theterm of the 2002 Agreement. These employeeswill be credited with 78 additional SUB creditunits. If they are otherwise not employed, theywill be eligible for 65% of pay based on last dayworked for each credit. If they are otherwiseemployed, they will be eligible to receive a top-up of their outside earnings to 65% of theirFord weekly pay based on last day worked.

Indefinite Layoff ProtectionWE HAVE EXPANDED the Job and IncomeSecurity program to cover situations ofindefinite layoffs where it is determined thatsuch layoffs will not result in recall. In thesesituations, the company will make availableincentives to encourage attrition, therebypreventing or limiting layoffs.

The incentives will include, for those eligibleto retire on 30 and Out or Special Early, aRetirement Allowance of $60,000. In addition, ifthere is an insufficient take-up of the retirementoffers, then Voluntary Termination ofEmployment (VTEP) offers will be made.

Restructuring IncentiveI The Restructuring Incentive, which is payable to

employees who are eligible for immediate retirement inthe event of a plant closure or restructuring, has beenincreased from $50,000 to $60,000.

I In situations where company initiated restructuringwould have resulted in the layoff of junior employees,this program encourages senior employees to retire andlessens the impact of such events.

Special Contingency Fund (SCF)The Special Contingency Fund has been improved and willprovide support for a number of funds and programs,including SUB. The fund also provides funding forDependent Scholarships, Child Care, the Training ReviewCommittee, Legal Services, Retirees Fund, Skilled TradesFund, Social Justice Fund, PEL, Health, Safety and Envir-onment Leadership Training and Medication Awareness.

SUB FundingI Funding for SUB has been increased by 2 cents in each

year of the agreement. The increased contributionlevels will only be applied when fund assets are less than40% of Maximum Funding.

I The maximum accrual of SUB credits has been improv-ed for employees as follows:

7 but less than 8 years will move from 52 weeks to 56weeks

8 but less than 9 years will move from 52 weeks to 60weeks

9 but less than 10 years will move from 52 weeks to 64weeks

SUB overpayments can now be recovered at $30 per pay-ment from future SUB payments ( up from $20 ) and at$75 from pay cheques ( up from $50 )

Voluntary Termination of Employment Plan (VTEP)The payment schedules for VTEP have been increased by$2,500 at each level.

SUB Credit GuaranteeAs part of the agreement regarding the Oakville site, wehave negotiated a guarantee that for any employees onlayoff, regular SUB benefit credits shall be cancelled at therate of 1 credit for each week of benefit, regardless of thestate of the SUB Fund, during the period from the date ofthe closure of the Ontario Truck Plant until the end of thecollective agreement.

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Monday, October 14, 2002 Thanksgiving

December 23, 2002 Christmas Holiday Period

December 24, 2002

December 25, 2002

December 26, 2002

December 27, 2002

December 30, 2002

December 31, 2002

January 1, 2003

Friday, April 18, 2003 Good Friday

Monday, April 21, 2003 Monday after Easter

Friday, May 16, 2003 Friday before Victoria Day

Monday, May 19, 2003 Victoria Day

Friday, July 4, 2003 Friday after Canada Day

Monday, August 4, 2003 Civic Holiday

Friday, August 29, 2003 Friday before Labour Day

Monday, September 1, 2003 Labour Day

Monday, October 13, 2003 Thanksgiving

December 24, 2003 Christmas Holiday Period

December 25, 2003

December 26, 2003

December 29, 2003

December 30, 2003

December 31, 2003

January 1, 2004

January 2, 2004

Friday, April 9, 2004 Good Friday

Monday, April 12, 2004 Monday After Easter

Friday, May 21, 2004 Friday before Victoria Day

Monday, May 24, 2004 Victoria Day

Friday, July 2, 2004 Friday after Canada Day

Monday, August 2, 2004 Civic Holiday

Friday, September 3, 2004 Friday before Labour Day

Monday, September 6, 2004 Labour Day

Monday, October 11, 2004 Thanksgiving

December 24, 2004 Christmas Holiday Period

December 27, 2004

December 28, 2004

December 29, 2004

December 30, 2004

December 31, 2004

Friday, March 25, 2005 Good Friday

Monday, March 28, 2005 Monday After Easter

Friday, May 20, 2005 Friday before Victoria Day

Monday, May 23, 2005 Victoria Day

Friday, July 1, 2005 Canada Day

Monday, August 1, 2005 Civic Holiday

Friday, September 2, 2005 Friday before Labour Day

Monday, September 5, 2005 Labour Day

Time Off the Job

PAID HOLIDAY SCHEDULE

TIME OFF THE JOB remains a top union priority. Moretime off provides needed relief from the stress of work.And negotiating time off protects existing jobs and helpscreate new ones.

In this collective agreement we increased annual vaca-

tion entitlements by 28 hours across all vacation brackets.That means over 200 new jobs created because ofmandatory vacation.

Added to the new hours is what we have already bargain-ed in time off including SPA, 4 day weekends, and holidays.

Vacation Bonus: The annual vacation bonus increases by $300 from $1200 to $1500.

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SENIORITYNEW VACATION/ TOTAL PAID

EAA HOURS TIME OFF=HOURS

One but less than two years 104 312

two but less than three 112 320

three but less than five 140 348

five but less than ten 160 368

ten but less than fifteen 180 388

fifteen but less than twenty 200 408

twenty or more 240 448

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IN THIS ROUND of bargaining we continued to makeprogress for the skilled trades. The bargaining addressedissues ranging from the skilled trades wage differential tosecuring additional apprenticeships: from skilled tradestechnical training to renewing and improving our pro-visions on work ownership.

Apprentices:The union has bargained 110 new openings for appren-tices over the life of the agreement. The apprenticeshipsare part of the union’s efforts to replace expected skilledtrades retirements.

Members who register for the apprenticeship selectionprocess will be offered a 16 hour pre-apprenticeshiporientation program.

Skilled Trades

Training and Education

Training and Education:This agreement expands our training and educationprograms, develops more learning opportunities andprovides greater funding and financial support.

Workplace Training Program:The Workplace Training Program has been improved withadditional funding and new courses. The courses areconducted during working hours in day-long blocks.

Technology Training Committees:New technology training committees to be established ateach location to focus on technical training.

Basic Skills Upgrading:Programs of basic skills upgrading will be established atthose locations interested in developing courses.

Tuition Refund for Members:The annual amount available under the tuition refundprogram for members has been increased by $750 and nowcovers those on defined leaves. Members enrolled inapproved courses will now receive up to $3250 includingup to $200 for books and related costs.

The increased amount will also be available to laid offworkers.

Retired Workers Fund:Increased funding to support educational and awarenessprograms for retired workers.

Labour Studies:Streamlined tuition assistance process for membersenrolled in the CAW/ McMaster University Labour StudiesCertificate.

Education and Program Funds:Increased funding support for a number of unionsponsored education programs including health andsafety, paid education leave (PEL) and the skilled trades.

The company will join the union’s efforts to lobbygovernment for greater support for apprenticeshipprograms.

Skilled Trades Replacements:

Each location to review need for skilled trades workers tocover for those who are absent for contractual time off(vacation, SPA, training etc).

Skilled Trades Union Education Program:

Increased funding for the skilled trades union educationprogram.

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President’s MessageContinued from Page 1

shocked our union by announcing that they planned to closethe Ontario Truck Plant in Oakville, eliminating 1400 jobs, andmove production of the F-series truck to a new factory inDearborn, Michigan.

Our union, from top to bottom, faced a crucial choice overhow to respond to that initial announcement. We could haveresigned ourselves to the loss of the OTP. We could have hungour heads, accepted the job loss, and blamed globalization forour troubles.

That’s certainly what Ford’s management expected us to do.They’ve been saying for eight months, “It’s closing, it’s gone,the plant will be torn down, there’s nothing you can do aboutit.” That’s also what the analysts and the so-called experts said,too.

But we made a very different choice. We rejected thecompany’s right to destroy 1400 livelihoods without a fight. Werejected their right to move our work to the U.S. Wedemanded a say in the investment decisions that shape ourfuture.

Most important of all, we told Ford in January that the OTPclosure would be a central issue in our bargaining. They hadto solve the problem in Oakville, or they would face a workstoppage.

It wasn’t just me who said that. CAW local leaders inOakville said it. So did CAW members who attended rallies andwrote letters and sent e-mails and wore buttons. So did CAWlocal leadership and membership at every Ford location inCanada – from St. Thomas to Windsor to Bramalea. AlexKeeney, chair of our CAW-Ford Master Bargaining Committee,played a crucial role. He told Ford’s management consistently,time after time after time; ‘Settle the problem in Oakville, oryou’ll face a strike’.

Thanks to that determination, the unity of the bargainingcommittee, and your solidarity, in addition to the patterneconomics, we were able to gain commitments for the futureat all Ford locations and we were able to negotiate a verypositive resolve to the Oakville situation, including:

I Ford committed to spend $600 million for a new generationWindstar, launching in fall of 2003

I An all-new high-content Mercury version of thatproduct, will bring new work to Oakville

I Production of the F-series will run until July 2004I Transferring 900 jobs from OTP to the Windstar

plant in August 2004, for a third shiftI Guaranteeing the 900 jobs until at least the end of

our contract in September 2005I Using buy-outs to encourage early retirement of

senior members throughout the Oakville complex.I Potentially the whole transition could occur without

a single involuntary layoff.Best of all, Ford has outlined an exciting vision for

the complete revitalization of the Oakville complex,beginning in 2006. This would require a massiveinvestment of hundreds of millions of dollars andwould bring flexible manufacturing capabilities, thatwould secure Oakville employment at approximately4000 jobs into the foreseeable future.

Many factors contributed to our ability to save 900jobs in Oakville. Ford demonstrated their good will inworking sincerely to find a resolve to ourmembership’s job security concerns. Your CAWbargaining committee members showed incrediblediscipline by staying focused on the main issues. TheLocal 707 bargaining committee deserves enormouscredit for dealing with the necessary issues to securethe jobs of Local 707 CAW members.

Most important of all was the unity of ourbargaining committee and the solidarity of ourmembers at all Ford locations in Canada, in defendingthe jobs and livelihoods of our brothers and sisters inOakville. We never could have bargained theseinvestments and jobs for Oakville if we hadn’t beenprepared to stop their production to get a satisfactoryresolve.

In short, without the willingness of CAW membersto back up words with collective action, yourbargaining representatives couldn’t bring back theagreement you have before you today.

One powerful moment symbolized for me what wehave accomplished at Ford in 2002. As our MasterCommittee was meeting to decide to accept Ford’soffer, a local Oakville leader, tears in his eyes, offeredhis heartfelt thanks to Ford workers at other locationsfor their solidarity in fighting the OTP closure. Thena local leader from Windsor, with tears in his eyes,offered his thanks to the Oakville workers for saving900 jobs;Windsor supplies the engine for every Ford orMercury minivan that will roll off the line, and so morejobs in Oakville means more jobs in Windsor.

That, brothers and sisters, is what solidarity is allabout. Standing firm, arm in arm, because we can wina lot more together than we can apart. And everyvictory we win for one group of workers, ends upstrengthening us all.

I’ve never been prouder to be the President of ourunion. Thank you for your active support, includingyour e-mail and fax messages during bargaining. I amproud to join with chairperson Alex Keeney, yourmaster bargaining committee and all local bargainingteams in unanimously recommending this tentativeagreement for your ratification.

Buzz HargroveCAW President

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Employment Equity

I Anger Management counselingI White Ribbon Day, December 6th, one minute

workplace shutdown where feasible, increasingjoint recognition of violence against women

I Joint campaign raising awareness of December10th, International Human Rights Day

I Diversity in the workplace handbook

Improved Family Initiatives

IN THE LAST round of bargaining we made a majorbreakthrough with a new subsidy of $10 per day (and $5per half-day) to help cover the cost of childcare forchildren ages 5 and under, up to $2,000 per year, per child.The union went into bargaining looking to improve thebenefit and increase the number of children covered. Weaccomplished both. This agreement increases the subsidyto $12 per day ($6 per half-day) to a maximum of $2,400per year, per child. And the $6 subsidy is now extended tolicenced not-for-profit before-school and after-school carefor children ages six, seven and eight. An estimated 2,000more children are now eligible, bringing the total numberof children covered to more than 4,900. The benefit will befully co-ordinated for hourly Ford employees.

Improved Childcare Benefit:I fees reduced by up to $12 per-day subsidyI up to $2,400 per year, per childI available for children 8 and underI all licenced non-profit care eligible

I full-timeI part-timeI group careI in-home careI before-school careI after-school care

I existing CAW centres to continue

In 1999 the union negotiated for the first timea program to provide financial support todependent children attending college oruniversity. In this agreement the program hasbeen expanded and the financial assistancehas been significantly increased.

I Funding increased from $800 to $1300annually.

I Benefit will be fully coordinated for hourlyFord employees.

I Expanded to include eligible dependents ofretirees.

Dependent Scholarship:Tuition Assistance forDependent Children

The top-up of EI benefits to 65% of weekly payduring Parental and Adoption leaves has beenimproved by extending the period of benefits from10 weeks to 35 weeks. This improvement will alsoapply to those currently on leave for the remainingbalance of their leave.

Parental andAdoption Benefits

Substance Abuse

$500,000 funding available for Family Counsellingto include coverage for gambling addictions anddependents of retirees.

Smoking cessation covered to $200 under TuitionRefund program.

Bereavement Leave

Requirement to attend funeral has been eliminated.

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Insurance Examples(including projected COLA)*

THERE WILL BE annual increases in the rates for future S & A, EDB and Life Insurance claims as a result of the base rateincreases in each year of the agreement, as well as the fold-in of $1.46 of the current $1.51 COLA float.

In addition, any new COLA generated will continue to be folded-in on each anniversary date for the purpose ofcalculating these benefits.

Current September 23/02 September 22/03 September 20/04

Assembler

S&A $ 680 $ 705 $ 735 $ 760

EDB under 10 $ 2,375 $ 2,470 $ 2,590 $ 2,680

EDB over 10 $ 2,615 $ 2,715 $ 2,850 $ 2,950

Life Insurance $62,500 $65,000 $68,500 $71,000

Electrician

S & A $ 815 $ 840 $ 880 $ 905

EDB under 10 $ 2,860 $ 2,955 $ 3,105 $ 3,195

EDB over 10 $ 3,150 $ 3,250 $ 3,415 $ 3,515

Life Insurance $75,500 $78,000 $82,000 $84,500

* COLA is projected at 2% in each year of the agreement. Actual benefit levels may be higher or lower depending on actual inflation.

Improved Insurance Benefits

Accident and Sickness Benefits

Optional and DependentLife Insurance

ACCIDENT AND SICKNESS benefits will now be providedfrom the day a member undergoes day surgery.

THE OPTIONAL AND Dependent Group Life Insuranceprograms have been improved, effective January 1, 2003,by:I adding two new schedules of $55,000 and $60,000 for

spousal insurance and $22,000 and $24,000 forchildren.

I adding one new schedule of $225,000 to the optionalemployee life program.

I premium holidays will be provided for the months ofJanuary 2003 and January 2004.

I premiums will be decreased slightly in both programs.I there will be a one-month open enrollment period in

early 2003. During the open enrollment period currentparticipants will be permitted to increase their coverageby up to two schedules without evidence of insurability,and those not previously enrolled will be permitted toenter the program at either the lowest or second lowestschedules without providing evidence of insurability.

Extended Disability Benefits (EDB)

I In an important breakthrough, we have negotiatedinflation protection for workers on EDB. Starting onOctober 1, 2002, EDB recipients will have their benefitsadjusted annually by 90% of the rate of inflation.

I Current EDB recipients have been guaranteed aminimum benefit level of $1,800 per month, whichincludes income from the Ford pension plan, WSIB andany CPP benefits. This is an increase of $200 per month.After the initial increase, these benefits will be indexedannually, starting October 1, 2003.

Survivor Income BenefitsTransition and Bridge benefits will be increased by $50 permonth effective October 1, 2002, and by an additional $25per month October 1, 2003. These increases will also applyto current recipients.

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Health Care Improvements, Effective Oct. 1, 2002

Prosthetic Equipment &Durable Medical Equipment

Vision CareThe Vision care plan will be improved by increasingcoverages to:

Single vision $170 every 24 monthsBifocal $225 every 24 monthsMulti-focal $295 every 24 months

The multi-focal amount may be applied toward laser eyesurgery. This benefit would be in lieu of any claim underthe vision care plan for the next 48 months.

In-home nursing and homemakingI The hours available for the services of registered nurses

(RN) and registered practical nurses (RPN) has beenincreased from 4 hours to 6 hours per day, and theannual maximum has been increased from $7,500 to$12,000.

I A new benefit has been negotiated to coverhomemaking services up to 5 hours per week insituations where in-home nursing services are required.These services are included in the $12,000 annualmaximum.

I When the annual maximum for these services has beenreached, up to 2 hours/day are available for RN servicesfor the balance of the year.

Chiropractic BenefitsA $15 per visit chiropractic benefit will now be paid as atop-up while provincial plan benefits are being paid. Whenprovincial plan benefits have been exhausted, the chiro-practic plan will pay a $25/visit benefit until a total of $400annually has been paid from the plan. Once the $400 limithas been reached, the plan will reimburse at an amountper visit equal to the provincial government plan benefitonce provincial plan benefits have been exhausted.

Speech TherapyThe current benefit for Speech Therapy has beenincreased from $400 to $1,000 annually, and will includethe initial test.

Paramedical Coverage (New)New coverage for services of 4 paramedical practitionershas been negotiated in this agreement. Benefits payableunder the plan will be available following the exhaustion ofany government programs. The new coverages are asfollows:I Naturopaths ($25 per visit with an annual max. of

$300);I Podiatrists or Chiropodists ($11.45 per visit with a

combined annual maximum of $300) (Chiropodist onreferral from a physician);

I Registered Massage Therapists ($45 per visit, $200annual maximum);

Psychologist ServicesThe current coverage for psychologist services forpersonal, family and marital counselling has been

expanded to include counselling by a Master of SocialWork. The annual maximum for these services has beenincreased from $500 to $600.

Nutritional SupplementsNutritional supplements, when medically necessary andunder certain conditions, will be a covered benefit. Thisincludes provision for cancer patients under certainconditions.

Out of Province CoverageOut of Province coverage will be modified to provide formandatory repatriation when the family or admitting phy-sician and the attending physician determine medicalfitness and where appropriate arrangements have beenmade for admittance into the provincial health caresystem.

Dental PlanI The annual maximum has increased $300, from $2,200

to $2,500.

I The orthodontic lifetime maximum has increased by$400, from $2,800 to $3,200.

Chronic CareThe chronic care co-pay benefit has been increased fromthe current $42 per day to the level equal to the provincialchronic care co-payment charge, up to a maximum of $60per day. If a participant exhausts the 120 days of chroniccare coverage, a new benefit will be payable equal to thecharges, as set by the province, for accommodation in award or semi-private room in a Long Term Care facility.

Insulin PumpI The benefit for adults has been increased from $800 to

$1,000 every 5 years.

I New coverage has been introduced for children up to 18with Type 1 diabetes. The Insulin Pump coverage will beup to a maximum of $5,500 once every 5 years andinsulin infusion pump supplies will be covered to amaximum of $250 per month.

Orthotics

I Orthotics coverage will be increased to 2 pairs within a36 month period at the current maximum of $400.

I The parties have agreed to work toward establishing aparticipating provider network for orthotics.

Visco-supplementationVisco-supplementation therapy will be added as a newbenefit with coverage of up to $300 per treatment cycle, toa maximum of $1,200 every 3 years.

15

SupportingQuality Public Health Care

IN THIS ROUND of bargaining the CAW and thecompany have signed a joint letter in support ofCanada’s publicly funded health care system. Theletter outlines how workers in the auto industryand elsewhere benefit directly from access to thepublic health care system and how Canada’shealth care system has been an importantingredient in the performance of Canada’s autoindustry.

Publicly funded health care accounts for asignificant portion of Canada’s overall labour costadvantage in auto assembly versus the U.S, whichin turn has been a significant factor in maintainingand attracting new auto investment to Canada.

The letter urges the renewal of publicly fundedhealth care based on the existing principles ofuniversality, accessibility, portability, comprehen-siveness and public administration.

It also urges the federal and provincialgovernments to secure the public health caresystem’s funding base and modernize the range ofservices it covers.

Health Safety, Environment and Ergonomics

Health and Safety

Training: 8 hour legislative training provided to new unionreps; training in industrial risk insurance inspection andreports at annual meeting; new equipment review training;high risk jobs.

Information: metalworking fluids; company asbestosprogram; statistical information; ECPL; Acts andRegulations; home safety booklet/material; fire andinsurance inspection reports; skilled trades pre-job review(JSA).

TPTs: to get safety boot allowance after 30 days of work.

Master JHS Committee: to visit plants.

Ergonomics

Extensive new language: improved role for Master ErgoCommittee including: review of Ford corporate anddivisional ergonomic programs, policies, standards andinitiatives.

Sound ergonomic guidelines: develop and implement atearliest stages of the product/process development cycle toimprove job design in the workplace.

Annual meeting: Local Ergo Committees – 4 days.

Pre-start up review: company to encourage Local Ergo

Committees to participate in review of new machinery,equipment and work processes prior to start up.

International RSI Awareness Day: last day of Februarypromote awareness of repetitive strain injuries in order toreduce their occurrence including safety talks, videos,disseminating written material and posters.

Environment

Increased time for annual joint environmentmeeting: for all Local Environment Committees,increased to three (3) days.

Legislative training: include legislative training as partof the annual training.

Uncontrolled release of hazardous material:notification to Local Environment Committee.

Your CAW-Canada Master Bargaining Committee at Ford

BUZZ HARGROVEPresident

JIM O’NEILSecretary-Treasurer

ALEX KEENEYChairperson of Master Bargaining

Committee & President of Local 200

PEGGY NASHAssistant to the President

FRANK MCANALLYNational Representative

SYM GILLDirector, Pensions & Benefits

JEFF WAREHAMNational Representative,

Pensions & Benefits

CATHY WALKERDirector, Health & Safety

DAVID ROBERTSONDirector, Work

Organization and Training

TED SQUIRENational Representative

Skilled Trades

JIM STANFORDCAW Economist

BILL MURNIGHANNational Representative,

Research

TOM COCHOISChairperson, Local 200,

Windsor Engine Plant

JIM WHITTLEChairperson, Local 200,Windsor Casting Plant

TIM MURPHYChairperson,

Skilled Trades, Local 200,Windsor

REG GALBRAITHChairperson, Parts Depot,

Local 584, Bramalea

JOHN TEIXEIRAPresident,

Local 707, Oakville

PHIL KLUGChairperson,

Oakville Assembly Plant,Local 707, Oakville

PAT CARDUCCIChairperson,

Ontario Truck Plant,Local 707, Oakville

JOHN WELSHChairperson,Skilled Trades,

Local 707, Oakville

WHITEY MACDONALDChairperson,

Local 1520, St. Thomas

JOHN O’HANDLEYPresident, Local 1520,

St. Thomas

RON JONESChairperson, Skilled Trades,

Local 1520, St. Thomas

LYLE HARGROVEDirector, Health, Safety &

Environment Fund

TOM W. HARRISNational Health & Safety

Co-ordinator, Ford

RICK WITHERSPOONNational TrainingCoordinator, Ford

TASHLYN CHASENational ErgonomicsCo-ordinator, Ford

MAHMOOD KHANNational Equity

Co-Ordinator, Ford

COLIN HESLOPNational Skilled Trades

Training Co-Ordinator, Ford

JOHN BETTESDirector, Skilled Trades