3 things to watch for heading into Unifor, Ford Motor Co. contract talks
Following a successful ratification of its deal with Fiat Chrysler, Unifor will begin bargaining with Ford Motor Co. Tuesday.
CBC News spoke with Ian Lee, professor at Carleton University's Sprott School of Business on what he thinks people should expect to see in the Ford contract talks with Unifor.
Governments will likely step in to 'close the deal'
Lee believes Ford represents a more challenging set of negotiations compared to GM or FCA.
"That is going to ensure that the government of Canada and the government of Ontario are going to step in, whether behind the scenes or publicly to, shall we say, help close the deal," Lee said.
"At the end of the day, I do believe there will be a deal," he said.
But that deal will require government intervention to keep Ford in Windsor, says Lee.
Kathleen Wynne's government could use talks as political leverage
The popularity of Kathleen Wynne's government is sinking, meaning the Ontario Liberals might see these negotiations as an opportunity Lee says.
"It would be devastating for her government if any one of [the Detroit Three automakers] pulled out of Ontario," he says. "They're going to do anything possible to keep Ford there."
Ford seeking 'globally competitive' package
Lee says Ford is not seeking a deal that will be competitive locally, nationally or even between the United States and Canada.
"I think [Ford] is signaling that they find the compensation package in Canada too high, it's not globally competitive."
Last year, some business went to Mexico from Ford, instead of coming to Ontario. That's why Lee believes the governments will need to offer some subsidies for Unifor to be successful in the talks.