Magna to let CAW organize in its plants

Last Updated: Monday, October 15, 2007 | 6:09 PM ET

CBC News

Magna International has signed a "framework of friendship" that will see the CAW invited into all of the auto-parts giant's non-union factories in Canada for unprecedented organizing votes.

The agreement will allow thousands of Magna employees to vote in secret-ballot elections on whether they want to join the Canadian Auto Workers.

Ultimately, the framework could cover 18,000 Canadian Magna employees at 45 facilities. Most Magna plants are not unionized. 

'We are not afraid of labour organizations.'—Magna chair Frank Stronach

Under the agreement, Magna employees at each plant will get a chance to vote. If a majority of workers at each Magna facility votes Yes, then the employees at that facility will join the CAW and the plant will be covered by a new CAW-Magna collective agreement.

The framework is a set of principles designed to "govern the process whereby Magna workers vote on union membership, negotiate and approve their contract, and resolve concerns," according to a CAW release. It's not a collective agreement on its own.

No-strike pledge

In return for the organizing boost, the CAW agreed to a framework principle that calls for the use of final-offer arbitration instead of strikes to settle contract disputes.

"With this agreement, Magna and the CAW will develop a new way of working together," CAW president Buzz Hargrove said. "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."

Hargrove and Magna officials both rejected suggestions that unionizing would ultimately lead to higher costs at Magna. 

"This isn't about driving up costs," Hargrove told a news conference Monday. "It's about a long-term relationship committed to helping build this industry, strengthen it and provide jobs for Canadians."

Over the years, Magna founder and chair Frank Stronach has been critical of unions, but he insisted Monday that was more of a philosophical disagreement with the way some unions operate than a bias against unions.

"We are not afraid of labour organizations," Stronach said. "We never, ever did say that we should not be unionized. At the same time, we all have to change." 

Stronach said the company and the union share the same mandate "to be efficient, to be competitive, and that takes a lot of goodwill."

He said society needs checks and balances. "Unions do fulfil that important role."

Stronach said Magna sees the CAW as "an important ally."

Hargrove said the CAW and Magna both see such a non-traditional arrangement as a better way to go in an increasingly competitive global environment. 

Magna shares were down 81 cents to close at $91.89 in TSX trading Monday.