EoW May 2009

But he considers the Canadian “loony” unlikely to strengthen to that point before expiration of the new agreement. The pact renews for another 12 months a contract already in effect. The union credits its year-long effort under the earlier agreement for a collective reduction in Canadian labour costs at GM, Chrysler, and Ford of about C$900 million (US$694 million). Ford has not applied for government assistance, in either the US or Canada. And fromDetroit . . . In an almost concurrent development, the acceptance, on ❈ ❈ 10 th March, of renegotiated contract concessions by hourly workers at Ford Motor Co plants across the United States intensified pressure on General Motors and Chrysler to come to terms with the United Auto Workers union, mandated for bailouts by Washington. On the same day, members of an Obama administration task force were touring GM and Chrysler plants in the Detroit area. The two companies had less than a month within which to demonstrate that they can become viable. While Ford has not sought emergency government loans, the agreement with the UAW which freezes wages and cuts bonuses is one of several steps the auto maker has taken to reduce costs and maintain liquidity under the “Way Forward” turnaround plan it launched in January 2006. According to the union, 59% of production workers and 58% of skilled-trades workers at Ford voted for the concessions. Bob King, a vice president of the UAW, said in a statement, “The voting results show that our members are prepared to make painful sacrifices in order to be part of the solution to the problems facing Ford and the US auto industry.” As reported in the Oregonian , the Russian government may be poised for a move of some significance to Evraz Oregon Steel Mills , Inc, the Portland-based business acquired in 2007 by Russia’s Evraz Group. The company manufactures cold rolled steel, seamless tubes, and wire and related products. The Oregonian’s Richard Read wrote that Prime Minister Vladimir Putin endorses a proposed mega-merger – including Evraz – that would give the Kremlin a stake in a steel behemoth incorporating Oregon Steel. Evraz Group, one of the world’s largest vertically integrated steel makers, has taken on enormous foreign debt deriving from almost $8 billion in acquisitions abroad. Russia’s state bailout agency, chaired by Mr Putin, has already lent Evraz $1.8 billion to refinance its foreign debt. Citing an Asia Times report, Mr Read said that Evraz is using the funds to avoid forfeiting such properties as Evraz Oregon Steel to the foreign banks holding the mortgages. Mr Putin signalled his support for a mega-merger approach during his opening remarks on 28 th January at the annual meeting of the World Economic Forum in Davos, Switzerland. Advantages of a diversified Russian metals-and-mining colossus Steel A Russian rescue plan for the Evraz Group finds favour in Oregon

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EuroWire – May 2009