UPDATE 1-Ford, Canadian union agree on contract changes

* CAW, Ford reach tentative deal on concessions

* Agreement covers some 7,000 workers

* Tentative contract faces weekend ratification vote

DETROIT, Oct 30 - Ford Motor Co <F.N> and the Canadian Auto Workers union said on Friday they had reached a deal that would freeze wages for some 7,000 workers into 2012 in exchange for protecting jobs at Ford's factories in Canada.

The union had granted similar concessions to General Motors Co [GM.UL] and Chrysler, and CAW President Ken Lewenza said the proposed changes to the union's contract with Ford were based on that precedent.

The proposed contract changes face a ratification vote at union locals this weekend, CAW officials said.

GM and Chrysler went through bankruptcies funded by the Obama administration this year to shed costs and debt. Ford was the only U.S. automaker to have avoided bankruptcy.

Lewenza said Ford's heavier debt load relative to its closest competitors had made it unavoidable to offer changes to a contract that will run until September 2012.

"Ford is not in good financial shape," he told reporters at a briefing in Toronto.

In exchange for the concessions, Ford withdrew a threat to pull out of Canada and pledged to keep 10 percent of its North American manufacturing output in Canada, union officials said.

Ford has been seeking a similar set of concessions from its major union, the United Auto Workers. But the ratification of those concessions has been thrown into jeopardy by strong opposition from rank-and-file workers in the United States.

UAW workers have expressed opposition to a provision of the proposed deal with Ford that would see the union surrender its right to strike when its current contract expires in 2011.