October 2009

[Ally]

Ford`s Stand: Accept cuts or we Invest Elsewhere

Ford and the Canadian Auto Workers resumed critical negotiations Monday, with the company stressing that it needed to cut labour costs here or it would have to invest elsewhere in the future.

Joe Hinrichs, Ford group vice-president of global manufacturing and labour affairs, told negotiators for the Canadian Auto Workers union that current labour costs are uncompetitive with their U.S. peers and employees at rival General Motors and Ford in Canada.

Hinrichs said a continuing disadvantage would make it difficult for Ford to invest here, according to CAW president Ken Lewenza.

"He reminded us of that again and that we have to deal with it now," Lewenza said in a brief break from talks at a downtown hotel.

Lewenza said Hinrichs underlined Ford has no plans for more production at the sputtering St. Thomas assembly plant beyond 2011. "He (Hinrichs) told us that was the reality and we have to deal with it. What we have to do now is find some balance and protect Ford investments in Canada."

Ford`s current labour costs, including benefits and pension obligations in Canada, are about $16 (U.S.) an hour more than any of its plants south of the border and even higher elsewhere. Ford`s labour costs in the United States are in the range of $50-$52 an hour.

Earlier this month Ford indicated its labour costs, which represent less than 10

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[Ally]

Where Value Shoppers should look

It`s a tough lot being a first-time homebuyer.

Finding a property for less than $400,000 is a challenging proposition in a summer market that has been characterized by bidding wars, even on the most affordable homes.

Thanks to low mortgage rates, sales records have been smashed in the past two months in the Greater Toronto Area, while listings are down significantly.

So where do you buy that first home?

According to a study of the top 10 neighbourhoods for first-time buyers conducted by Coldwell Banker Terrequity Realty, the best spot in Toronto proper to buy a non-condo property is in the Leslie St. and Finch Ave. area of North York – about as far north of downtown as you can go without entering the 905 region.

"First-time buyers are getting pretty despondent with all the multiple offers on the market, but there are neighbourhoods out there that still offer value," Coldwell Banker broker Andrew Zsolt said yesterday. "But you have to go farther from the downtown core."

One harsh reality is that first-time buyers pretty much have to give up the dream of living in a lowrise property if they want to live in downtown Toronto.

But go a little north and the opportunities open up.

Read the full article here.

 

[Ally]

Increase seen in Resale Home Prices

If you were expecting home prices to tumble this year, you weren`t alone. But strong sales have meant that analysts have been struggling to figure out the direction of a market that has defied expectations and the gravitational pull of a global recession.

In an abrupt reversal yesterday, the Canadian Real Estate Association now says existing new home prices across Canada are forecast to increase – not decrease – by the end of the year.

"The difference in the resale housing market now, compared to the beginning of the year, is night and day," said CREA president Dale Ripplinger.

Revised average home prices across Canada are expected to hit $309,500, up 1.5 per cent from 2008. The original estimate was for home prices to decline by 5.2 per cent.

"The speed and magnitude of the recovery was unprecedented," said CREA economist Gregory Klump in an interview. "Nobody expected it to bounce back this fast and by this much."

After more than a decade of year-over-year price increases, national prices did go lower – although barely – by the end of 2008, to $304,985. But that was less than 1 per cent down from the peak in 2007. An increase in national housing prices this year, if the forecast turns out to be accurate, would mean the market barely hit a speed bump on the way to recovery.

"I think there is a sense from consumers that the worst of the recession may be behind us," said Klump.

Sales activity is now forecast to hit 432,600 units this year. That`s less than a 1 per cent decline from the activity set in 2008. CREA had originally forecast a decline of 14.7 per cent.

Read the full article here.

 

[Ally]

Ford gives CAW Production Pledge

The Canadian Auto Workers union is close to an agreement with Ford Motor Co. (F-N6.99-0.31-4.25%) that includes a commitment that the company`s Canadian operations will manufacture 10 per cent of the vehicles Ford makes in North America, but also means the end of the line for its St. Thomas, Ont., assembly plant.

The union scheduled a news conference for 3 p.m. ET to update reporters on the talks.

"We couldn`t save St. Thomas … but we got good severance [packages] that take care of the majority of the people," a source involved in the talks said Friday.

That means the loss of about 1,600 jobs at the plant, which has been on the endangered list for several years because of waning demand for full-size, rear-wheel drive cars that go into taxi and police fleets.

Ford has agreed, however to add a new vehicle to its Oakville, Ont., assembly plant, which is operating on two shifts and now manufactures Ford Edge and Flex and Lincoln MKX and MKT crossover utility vehicles.

"Part of the investment in Oakville is a global platform, a significant investment which will drive another product," said one source involved in the negotiations.

Read the full article here.

 

[Ally]

Is Mayor David Miller a Lame Duck?

This week marked the first city council meeting for David Miller since he announced he`s not running again – and what a difference.

During the two-day session, Miller said far less than usual in media scrums, his left-wing loyalists were noticeably antsy, and his right-wing opponents seemed emboldened.

And by the end of the two-day meeting, the mayor had lost two key votes. On Monday, council voted to cancel a planned increase in garbage fees. On Tuesday, it decided to make Astral Media foot the full cost of installing $6 million worth of concrete footings for 8,842 items, mostly trash bins.

"He`s not going to get his own way, the way he has been,`` Councillor Case Ootes said.

Losing key votes is an unfamiliar experience for Miller, who petitioned for and won a special deal for Toronto that puts more power in the mayor`s hands.

And so, with a year to go before the next election, some critics, such as Councillor Michael Walker, are saying Miller should leave early.

Read the full article here.

 

[Ally]

Smart Meter Phase-in sparks cost fears

Hey big spender, want to become part of Toronto`s power elite? Do your laundry and run the dishwasher in the late afternoon.

About 250,000 households in the city are now on time-of-use rates, meaning they will be charged a premium when using electricity during weekday peak periods and get a discount when power is consumed overnight.

"By January we should have pretty well all residential customers on time-of-use pricing," said Blair Peberdy, vice-president of marketing and chief conservation officer at Toronto Hydro Corp.

The introduction of time-of-use billing follows the province-wide deployment of digital smart meters, which track how much electricity individual households consume throughout the day. That information is then transmitted wirelessly to the utility. Toronto Hydro and utilities across the province are introducing time-of-use rates to make consumers more aware of when and how they use electricity.

Read the full article here.