• May 22nd 2009 at 3:58PM
  • 7
After two weeks of intense negotiations, General Motors Canada and the Canadian Auto Workers (CAW) union have reached a deal that will help the automaker cut costs, allowing it to meet the terms for additional government loans. Ken Lewenza, head of the CAW, said it was "a struggle" to reach a deal with GM, but he added that the union had done the best it could under the circumstances, saying: "we have protected most of our core benefits."
Wages, pensions and most benefits were preserved, although restructured in some instances. The union's pension rates will be frozen until 2015, for instance. The deal also keeps GM's plants in Oshawa, St. Catharines and Woodstock open for the foreseeable future. In total, it is believed that the new deal will result in $15 to $16 hourly wage savings on average. The announcement comes a day after the UAW reached a deal of its own with GM.

Although a different agreement was signed with the CAW in March, it had been rejected by the provincial and federal governments who wanted more cost-cutting to avoid bankruptcy. Although GM now appears to be heading in the same direction as Chrysler, hopefully there will be enough progress before the June 1 deadline to keep Chapter 11 a viable option. All told, the recent deals mean that 16 GM factories will close and an additional 21,000 hourly workers will be out of a job.

[Source: CTV]

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    • 1 Second Ago
      • 6 Years Ago
      at this point does it really matter....NO!
      • 6 Years Ago
      last I checked "America" is a continent. If you are referring to "US made by US companies", then you should state that. However, that will probably not include Chrysler in the near future (because of FIAT).

      There's a saying ,don't know where I heard it "when Facism comes to the US it will come as patriotism".
      • 6 Years Ago
      "we have protected most of our core benefits."

      Yeah, because that is what counts, when biting the hand that feeds you.

        • 6 Years Ago
        I'm so glad that I'm not the only one who sees it this way.
      • 6 Years Ago
      Ugh, will we ever be rid of these overpaid high school dropouts. Even with their "concessions" it's way beyond too much. Most of them couldn't properly pour coffee at Timmy Ho's. Sweet Jesus, it's looking like they're going to own a significant portion of a company that only exists due to our tax dollars. Anyone who thinks this is good, please google British Leyland.
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