CAW, Magna Sign Framework of Fairness, Usher in New Labour Relationship

AURORA, ON, Oct. 15 /CNW/ - Frank Stronach, Chairman of the Board of Magna International Inc., and Buzz Hargrove, President of the Canadian Auto Workers, signed a historic agreement in Toronto today that will usher in a new relationship between Canada's largest automotive employer and Canada's largest private sector union.

The agreement, called the Framework of Fairness, will allow Magna employees to participate in secret-ballot votes regarding membership in the CAW. It also establishes an innovative new structure for labour relations involving workplace elections and referenda; a multi-faceted dispute settlement process; and the use of final-offer arbitration instead of work stoppages to settle contract disputes.

"With this agreement, Magna and the CAW will develop a new way of working together," Hargrove said in signing the agreement. "It will strengthen the CAW's ability to support auto parts workers at an incredibly challenging time, but in a way that also strengthens Canada's auto industry."

"Magna and the CAW have established an effective working relationship through our existing unionized facilities, and through our participation in joint industry initiatives like the Canadian Automotive Partnership Council," Hargrove added. "The Framework of Fairness takes our relationship to the next level."

The Framework of Fairness is not a collective agreement. It is a set of principles that will govern the process whereby Magna workers vote on union membership, negotiate and approve their contract, and resolve concerns.

Magna employees at each plant will have the chance to vote (in secret-ballot elections supervised by independent officials) on whether to approve a new contract and join the CAW. If a majority of workers in a facility support CAW membership, then that plant will be covered by a new CAW-Magna national collective agreement, and its employees will join the CAW. The national contract, CAW membership, and subsequent changes negotiated to that national contract must all be approved by Magna employees through secret-ballot votes.

Once fully implemented, the Framework would cover up to 18,000 Magna production employees working in about 45 manufacturing facilities in Ontario.

Additional background materials are available at www.caw.ca.

Magna International is the world's most diversified automotive supplier, with worldwide sales of over $25 billion (U.S.). It employs 83,000 people in 23 countries, including over 20,000 in Canada.

The CAW is Canada's largest private sector trade union, representing 260,000 members working in 16 different sectors of the Canadian economy. The union currently represents over 25,000 production employees working for independent auto parts firms, including in three Magna facilities.

Source: CNW Group Ltd.

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