PLANT CHAIRPERSON’S WEB REPORT

Kim Clout
June, 2009

Last week Brother Champagne and I attended Ford Council. As expected, there was a lot of open, and at times frank, discussion about the possibility of opening negotiations with Ford here in Canada. The leadership from all of the locations reported on how upset their membership was with the company's decision not to pay out the $1,700 bonus at the expected date. Ford made the situation even worse by not informing the membership until less than a week before we were to receive this money on our cheques. Yes, the money is important, but what concerns us equally is Fords over all tone and the message this aggressive action sends to the membership. Traditionally the relationship between the CAW and Ford has been seen as the best in comparison to GM and Chrysler. It’s safe to say that things are definitely very strained right now.

Ford has informed the CAW that they will make a decision very soon on where the next generation of Oakville’s vehicles will be built. They’re complaining to us about productivity, quality and H&S issues at the Oakville plant. We’ll be analyzing those numbers as we move forward. Unfortunately, this is the first time the union has been told about most of these numbers, so it’s impossible to respond without analyzing them first. Very little will be left here in Canada if Ford pulls the plug on Oakville. This position is confusing for not only your leadership, but the entire membership because they’re out there bragging about how great they’re doing, then telling the union we have to make concessions and are threatening product.

Last week, the US government gave Ford 5.9 billion dollars in low interest loans through an environmental fund to help re-tool their American plants. That’s a lot of money, with more expected in 2010. So far, we haven’t heard of any such governmental initiative here in Canada. This crisis in the industry only shows that government can’t sit idly by and let the market dictate what happens to our most important industry. The CAW has been demanding for years that the government develop a true automotive strategy. Auto provides good paying jobs and is an integral part of our economy. Many hospitals and schools are built with the taxes auto workers pay.

With everything put together, it’s safe to say that we may be headed for an extremely difficult round of bargaining. Your union's position, and the company's position, is miles apart right now. CAW/Ford Council decided that we need to ensure that not only the local leadership, but the entire membership, are aware of the challenges we face. Our expectation is that there will be a larger leadership meeting some time in the near future. Until then, no decision has been made on whether or not we will enter bargaining with the company. Once again, it’s shaping up to be a very busy summer for your union and the membership. As usual, we will keep you informed as best as we possibly can.

Lately we have taken some questions as to why there are students entering the building one week before the remainder of our Bramalea children. The reason is very simple. Some of the students marked on their application that they were not available for a start date until next week. These are brand new students so it wasn’t very realistic for us to demand that the company run two full orientation classes. As you are also aware, a posting has gone up for members that may have additional children that haven’t been hired for the summer. This was in response to a request from the union.

The In Plant would like to wish everyone a safe and enjoyable summer. I am off on vacation this week but can still reached through the union office or at Kim clout@hotmail.com

Kim Clout
Plant Chairperson
CAW Local 584

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INPLANT WEBSITE REPORT
JUNE, 2009

With everything going on both in the auto industry and in our warehouse lately, we feel that it is important to try and keep the membership as updated as possible. As your Chairperson, I raised the idea of posting Inplant reports on the Local website with Brother Champagne a few months ago. The concern is that doing so will have a negative impact on the attendance at union meetings and members won't interact with their CAW reps as much as we would like. We decided to wait until after the elections to implement it. I believe it is still an idea worth trying and hopefully it will stop some of the rumours or fear mongering that occasionally goes on in the warehouse. As usual, any comments or questions the membership has can be directed to me or one of your committeepersons. Also, I can be reached by email at kimclout@hotmail.com. Please do not hesitate to forward any questions or comments you may have.

Last Friday I attended a meeting with Brothers Lewenza, Vince and other top National leadership. One elected representative from each location that sits on the Master Committee was also present. Joe Henrichs, Marty Mulloy, Stacey Firth and other top Ford management represented the company. Ford applied a lot of pressure through the media prior to the meeting in the hopes of getting a commitment from the CAW to enter bargaining on an established date. The meeting was originally scheduled as a regular update on planned North American production.

The company is pushing very hard for us to get back to the table. We were open to entering bargaining with Ford a few months ago and clearly communicated that to them. They refused and decided to attack our contract with Chrysler through the media, stating it wasn't nearly enough. The CAW felt that this was a very aggressive position to be taking, considering they were not requesting government loans.

Traditionally, the CAW/Ford relationship is probably the strongest out of the three, so your leadership was very concerned with Ford's position. Unlike GM and Chrysler, the CAW/Ford membership has received the $3500 payment earlier this year and we have begun issuing the second week of SPA's that the other two are not eligible for. The GM and Chrysler agreement contained job guarantees. That is exactly what we will be demanding for our Ford membership also. As of now, there is no scheduled bargaining. We will keep the membership updated on any changes.

Lately, we have been asked a few questions and have heard a lot of inaccurate rumours on the floor regarding the 12 noon picking job that was posted. The accumulation class had one extra member added to it through the placement procedure permanently on June 5th. We have an agreement with the company to maintain 20 2:30 Accumulators. The company could have taken the position that this was a necessary accommodation through our injured worker placement process so the 20 number doesn't apply. In the end they honoured our agreement. This was a victory for the union.

Incredibly, some members are attempting to put a negative twist on an accomplishment that allows a member the opportunity to get home early and spend more time with family. If this permanent transfer to the accumulation class could have been completed a couple months ago, it would have been done to avoid any impact on other members. We did have a driver exercise their seniority rights under the collective agreement and take a 12 noon job that was posted. This left the junior 12 noon picker with the only option of bidding into the 2:30 driving job or risk being forced to accumulation, as per seniority and bidding procedure. As unfortunate as that situation is, it is not uncommon and sometimes simply happens when members exercise their seniority rights. I'm asking the membership to please contact the union before believing any of the slander that is floating around on the floor on this issue.

Hopefully these reports will increase communication and lead to a much stronger local. These are still extremely challenging times. The strength we get from our solidarity and the support for our great union, the CAW, is what will carry us through this together.

In Solidarity,
Kim Clout
Plant Chairperson
CAW Local 584

Next Retirees Meeting
September 2, 2009

1 PM

Canadian Legion
80 Mary Street
Brampton
Click Here for Map

July 2, 2009

In this Blue Oval Connect Weekly Briefing…

• Ford Customers Drive Higher U.S. Sales
• Company Boosts Production in 3Q
• Executive Q&A: Moray Callum on Global Design
• "Drive one" Drive Experience Invitation
• More Luxury Highlights New Lincoln MKZ Executive Package
• Outside Voices: Toyota Builds Thicket of Patents Around Hybrid to Block Competitors

Ford Customers Drive Higher U.S. Sales
Customer demand for new products helped Ford Motor Company increase market share in June, even as Ford continued to de-escalate incentive spending. Ford, Lincoln and Mercury sales totaled 148,153, down 11 percent versus a year ago, which is believed to be the month’s lowest decline among major auto manufacturers.
“We’re making steady progress and are firmly focused on our Plan to build a sustainable and exciting Ford,” said Jim Farley, Ford group vice president, Marketing and Communications. “We remain grounded, however, given challenging industry and economic conditions.”
Sales of the Ford Fusion were 18,561, a June sales record and up 26 percent versus a year ago. Ford Flex sales were 4,784, a record for any month since it hit dealerships in June 2008. Sales of the company’s hybrid vehicles totaled 3,649, a June sales record and up 91 percent versus a year ago.
“Customers are showing us just how much they value the quality, fuel efficiency, safety and smart technology incorporated in our new product lineup,” Farley said. “This is an exciting time for Ford, which has more new vehicles in the market this year than any other automaker.”
To read the full article, click here.
Related Materials:

• June Sales by the Numbers
• Ford Improving Brand Perception, Transaction Prices with New Models
• Ford U.S. Sales Beat Estimates as Industry Stabilizes
• Ford Passes Toyota For No. 2 in the U.S.

Ford Boosts Production in 3Q
On Monday, the company announced it would increase production in the third quarter by 16 percent. Below are answers to some of the most common questions about the decision.
Q: Why did Ford increase production?
A: We took the tough actions last year to align production with the real demand. Now, as our market share improves and we are seeing a strong reception for some our our new products, we are in a position to raise production again.
Q: Do you really need more vehicles on the ground now?
A: Our inventories are lean. At the end of May we had 56 days supply. Overall industry was 64. GM was 88 and Chrysler was 82.
Q: Is the economy truly recovering?
A: We are seeing positive signals in the economy. Consumer confidence is at a 9-month high, and jobless claims are trending lower, suggesting we have reached bottom.
To read the full Q&A, click here.

Moray Callum
Executive Director, Design, The Americas
Ford Motor Company
Moray Callum was named the company's Executive Director, Ford Americas Design, effective May 1, 2009. Since 2006, Callum was responsible for implementing the design strategy and execution involving all Ford, Lincoln and Mercury cars and car-based crossovers. Previously he led Mazda's worldwide design after stints with Ghia Spa, Peugeot-Citroen PSA and Chrysler Corp. UK. Callum recently discussed his new role and other design topics with @Ford Online. Below are excerpts from that conversation.
Q: What is Ford learning about designing for a global customer base?
A: We are finding that global tastes among consumers are not as different as we thought. People want exciting cars and spirited vehicles in terms of design. And we're not only talking about the U.S. and Europe, but other regions as well. All customers want cars that stand out, and that's something that's surprised us a little. That's great for designers because we really enjoy working on those types of vehicles.
Q: What can you tell us about the look of future Ford Motor Company vehicles?
A: Look at the new Fiesta, which has received fantastic response around the world. Fiesta is a forerunner of what is coming, like the new Focus. The design of that car is more or less finished, and we're very happy with that. I think we have a great product lineup now and it's only going to get better. The design element of our future products is going to be even more important. I think people will be excited when they see our new vehicles.
To read the full Q&A, click here.

"Drive one" Drive Experience Invitation!!!
Ford is continuing to introduce great products to the marketplace with new cars, crossovers and trucks. In addition, our Quality, Green, Safety and Smart solutions are terrific proof points of how Ford is different.
As part of the company's commitment to provide you with the information you need about our 2010 product line up and technologies, the company is announcing the second annual "Drive one" Drive Experience. Like last year, the company is opening this event to you – a valued retiree. This drive event will allow you to experience Ford's products firsthand so you can share the information with your friends and family.
Vehicles available to drive at the test track will include the 2010 Taurus, Taurus SHO, Flex with EcoBoost, Mustang, Milan Hybrid, Lincoln MKT , the 2011 Fiesta and more. You'll also have a chance to experience our Park Assist system, the latest in SYNC and get a sneak peek at our next major technology – as we evolve the way Man and Machine interface in the car!
There will be a high demand to participate in this event and availability is extremely limited for each session. Registration will be on a first-come, first-serve basis.
This registration is for Ford retirees only. No guests will be allowed to participate. In your confirmation e-mail, there will be a link for an online safety training course. We ask that you complete this safety training course prior to your "Drive one" Drive Experience.
The dates and times still available for the event include:

• Thursday, July 23, 4:45 p.m. - 6:45 p.m.
• Saturday, July 25, 9:30 a.m. - 11:45 a.m.
• Saturday, July 25, 12:00 p.m. - 2:15 p.m.

Please make sure that you correctly type your e-mail address when you register so you receive your confirmation letter. If you do not receive your confirmation letter within 24 hours please send a note to driveone@ford.com.
Click here to register for the event.

More Luxury: Genuine Walnut Appointments Highlight New Lincoln MKZ Executive Package
A new trim level featuring additional wood appointments and unique trim has been added to the 2010 Lincoln MKZ, providing customers the opportunity to choose an even more luxurious model. Available in late summer, the new Executive Appearance Package offers more traditional luxury appointments and expands the range of Lincoln MKZ option packages. Early sales of the 2010 Lincoln MKZ indicate there is indeed consumer appetite for well-equipped versions of the newest sedan from Lincoln.
“We are encouraged by the number of customers who are purchasing our luxury packages. The Executive Appearance Package gives customers yet another terrific option when considering the new Lincoln MKZ,” said Greg Scott, marketing manager, Lincoln MKZ. “With more wood finish and upgraded trim on the interior and five color choices on the exterior, this new package nicely complements the popular Sport Appearance Package.”
Interior highlights of the Executive Appearance Package include:

• Available in Dark Charcoal or Cashmere color
• Luxury leather-trimmed seats
• Unique door trim with stitching
• Unique console armrest insert
• Genuine Swirl Walnut wood instrument panel accents
• Genuine Swirl Walnut wood console
• Premium front and rear floor mats with the Lincoln star

To read more on the new Lincoln MKZ Executive Package, click here.

Ford Employees Help Recover Buried Archive Documents
More than 100 Ford Cologne employees are helping to retrieve and safeguard precious documents recovered from the ruins of the city’s archive. The building containing the archive collapsed on March 3, 2009. The archive housed 65,000 original documents dating from the year 922, as well as maps, films, photos and items left to the city by figures like composer Jacques Offenbach and Nobel Prize-winning author Heinrich Boell.
Recovery work has been going on since the collapse and 85 percent of the archive material has now been safely recovered and stored in a transitional primary care center. The remaining 15 percent still lies in the debris at the site of the collapse. Ford’s volunteer helpers will be aiding recovery work until July 30, working in 12 shifts.
To read the full article, click here.

Ford Venezuela Opens its Doors to Family, Friends
Ford Venezuela recently opened the doors of its Valencia Plant to the community, providing the opportunity for the public to see how Ford assembles vehicles. The event took place on a production Saturday when more than 400 people, including community members, employees and their families, were able to see the whole assembly process and the Ford Production System.
The next open house event at the Valencia Plant will take place on June 30 when visitors will have the opportunity to plant trees around the site. The company also will share the new Social Responsibility Program with employee's families, donating mammograms, sonograms and having discussions about breast cancer prevention.
Related Material

• Photo Gallery
• Open House video

Body Shop in India Goes Automatic
Technicians in India expressed genuine excitement when the new automated line in the body shop began its first production in January, signifying its readiness to double productivity and welcome the new small car program.
Incorporating best practices from operations in Nanjing, Cologne and Valencia, the new automated line features an installation of 66 state-of-the-art ABB robots for spot welding, sealer application, hemming and parts handling. It will incorporate 30 percent automation compared to the original body shop facility that was completely manually-operated.
The current expansion will also include the use of the Electro Motive System (EMS) to carry the underbody sub-assay to the underbody main line, and automated flexible framing on the re-spot line, which is capable of handling six models in a single line. "The new process will enable us to have high flexibility in accommodating various models and high consistency in dimensions. Robotic line for welding operations and sealer application will help to speed up the process and double our production," said A D S Pathy, general manager of the body shop.
To read the full article, click here.

Telling the Successful ONE Ford Story in the Philippines
Ford Group Philippines (FGP) President Rick Baker was one of the guest speakers during a special forum at The Auto Focus People’s Choice Awards event on June 25 to discuss the future of the country's automotive sector, and share the ONE Ford story. The event was attended by some of the biggest personalities in the Philippine automotive industry, including the undersecretary of the Department of Trade and Industry, Elmer Hernandez, as well as the industry's top executives and key media.
The Auto Focus People’s Choice Awards is an event to promote a closely watched annual nationwide poll that determines the Philippines' most popular automobile makes and models.
The seven forum participants were each given up to five minutes to narrate a brief overview of major, concurrent developments in the automotive industry in their company’s principal home region, their outlook for 2009, and the effects of all these factors on the outlook on the Philippines' auto industry. As the sole representative of the U.S. automotive industry, Baker was able to provide insights on the overall industry. He discussed major developments in the U.S automotive industry and their impact on Ford Motor Company.
To read the full article, click here.

Toyota Builds Thicket of Patents Around Hybrid to Block Competitors
(Wall Street Journal) The Obama administration's tough new fuel-efficiency standards could pose problems for some car makers, but Toyota Motor Corp. is hoping to benefit. To read the full article, click here.
Ford U.S. Sales Beat Estimates as Industry Stabilizes
(Bloomberg) Ford Motor Co. said its June U.S. sales fell 11 percent, beating estimates, as analysts predicted a stabilizing U.S. economy may have led the auto industry to its strongest month this year. To read the full article, click here.
Toyota June U.S. Sales Down 32% to 131,654 units
(MarketWatch) Toyota Motor Corp. reported its U.S. sales fell 32 percent to 131,654 cars and trucks in June. To read the full article, click here.
Ford Passes Toyota for No. 2 in the U.S.
(CNBC) It's been a long time coming. Roughly two years if you're keeping score. That's the last time Ford was locked in as the No. 2 automaker in the U.S. Well, after the first six months of 2009 Ford as once again pulled ahead of Toyota in U.S. sales year-to-date. To read the full article, click here.
Porsche Rejects VW Takeover Offer
(Spiegel Online) The power struggle between German automakers Porsche and Volkswagen escalated on Monday with Porsche rejecting VW's takeover bid as unfeasible. To read the full article, click here.
General Motors Says China Sales Up 38%
(China Daily) General Motors Corp said last Wednesday that sales in China jumped 38 percent in the first half of this year, helped by strong demand for its minivans and other small vehicles. To read the full article, click here.

Ford Drives Savings, Peace of Mind in Time for Summer Driving Season
As the busy summer driving and family vacation season gets underway in the U.S., Ford continues its commitment to delivering high-quality, fuel-efficient vehicles for consumers to maximize their fun, relaxation and convenience during this welcomed time of year.
To take it a step further, through the end of June, the "Drive the Ford Difference" event provides added peace of mind, with Ford covering up to three months worth of payments on select Ford, Lincoln or Mercury vehicles, as well as 0 percent financing.
With the new "Drive the Ford Difference" campaign, consumers can stretch their travel dollars on other travel items.
"We continue to introduce world class products into the marketplace and are committed to restoring that much needed confidence for the consumer through our Drive the Ford Difference event," said Kenneth Czubay, Vice President of Sales and Marketing. "Our quality is unsurpassed by the best in the business and we remain focused on being the best or among the best in fuel economy with every new product introduced into the market."
To read more on the "Drive the Ford Difference" campaign, click here.


Ford Employees and Retirees Now Have Access to More X-Plan PINs!
Ford Motor Company has expanded its X-Plan initiative by granting two additional X-Plan PINs (6 total) to its employees and retirees through the end of 2009. Take advantage of this great opportunity and help boost company sales by extending X-Plan savings to your friends and neighbors by visiting www.axz.ford.com today.

There's Never Been a Better Time to Give Back
In times like these, giving back to the community is more important than ever. So when you test-drive a Ford vehicle, Ford will donate $20 to Susan G. Komen for the Cure® on your behalf – to the Komen affiliate in the city of your choice. Encourage friends and family to participate as possible. It’s easy! For more information, click here.

Got an Idea, Share It!
Ever had an idea for a new product or a suggestion for a current vehicle you'd like to share with the Ford team? If so, do we have some Web sites for you!
If you have an idea for a new product or technology you'd like to see on a Ford vehicle, click to the Ford New Ideas site at www.FordNewIdeas.com.
If you have a suggestion for a current Ford Motor Company product, click here to connect to the Customer Relationship Center.
Through these two sites, your ideas and comments will be directed to the appropriate teams within the company … One team, one plan, one goal … ONE Ford.

Recommit to Your Resolutions
Have you kept your New Year's Resolutions? This summer recommit to your health. Fruits and vegetables are in abundance, so healthier eating is easy. Warmer temperatures provide fun ways to burn calories, like swimming and canoeing. And if you've not yet stopped smoking, pick a Quit Day before summer's end to see how much money you can save by the end of the year.
Click here to take a quiz to create an effective plan.