Canada auto workers approve new contract with Ford

Canadian auto workers have overwhelmingly approved a new contract with Ford, sealing a tentative deal that averted what would have been a massive strike, a union said Sunday.

The Canadian Auto Workers reached the agreement with Ford last Monday, and a similar one days later with General Motors. Talks with Chrysler continue, the union said in a statement.

A total of 82 percent of Ford's 4,500 employees in Canada said yes to the new labor contract.

It provides for no wage increases, but workers will get a cost of living increase of about CAN$2,000 (US$2,050) each year starting in the second year of the contract.

Ford is also committed to creating 600 jobs in Canada, which will help make up for 800-odd earlier layoffs. Retirement terms were not changed.

The CAW represents 21,000 workers at Ford, GM and Chrysler.