Ford Hires 400 New Factory Workers in Canada -- Update

By Christina Rogers 

Ford Motor Co. has added 400 new factory workers to its ranks--this time in Canada.

The Dearborn, Mich., auto maker says it has brought the workers on board to supplement the 1,000 new employees hired last year at its Oakville, Canada, plant to build a new Edge crossover going on sale later this spring. The factory, which employs 4,500 workers in all, has also received a $700 million investment.

The next-generation Edge will be sold in more than 100 countries, including Western Europe for the first time. The additional hiring comes as lower gas prices have spurred demand for sport-utility vehicles and pickup trucks. The Oakville assembly plant also builds the Lincoln MKX and MKT crossovers.

The move is a big win for Canada at a time when it has struggled to secure new investment from auto makers, even as surging new-car demand has prompted them to spend heavily in factory expansions. Much of that money is now flowing to the U.S. South and Mexico, where labor rates are cheaper.

General Motors Co. recently said it would invest about $400 million in its Ingersoll, Ontario, assembly plant to build the next generation Equinox sport-utility vehicle. But Canada is poised to lose another GM assembly plant in 2016 when the auto maker consolidates its operations in Oshawa.

Fiat Chrysler Automobiles NV is also spending about $2 billion for a 14-week overhaul of its plant in Windsor, Ontario, to manufacturer its next-generation minivan. Canada won the work last year but not without a struggle. Fiat Chrysler Chief Executive Sergio Marchionne, in pressuring the Canadian and Ontario governments on a subsidy package last year, made clear the company had other options for building the new minivan outside of Canada.

With U.S. auto sales booming, auto makers have been staffing up in North America, hiring thousands of factory workers to replenish a workforce decimated during the recession.

Earlier this month, Ford said it would hire another 1,500 hourly workers in the first quarter in response to higher demand for pickup trucks. The move bumped hundreds of existing workers earning an entry-level wage to a higher, more senior pay rate.

Securing new jobs and investment in the U.S. will also be a major focal point of labor talks this year between the United Auto Workers union and the U.S. car makers. Ford's job announcements since the 2011 UAW contract have now topped 15,000 in the U.S., 3,000 more than originally promised. Ford also has invested more than $6.2 billion in plants and equipment.

Write to Christina Rogers at [e-mail]

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