Reuters reports that the Canadian Auto Workers leadership and General Motors Canada have agreed on a set of union concessions that, if approved by CAW members, could clear the way for both the Canadian federal and Ontario local governments to furnish the cash-starved automaker with billions more in bailout dollars. According to Reuters, the union has agreed to swallow a wage freeze through 2012, reduced vacation time, and higher co-pays on their benefits plans. These changes would come on top of proposed pay reductions for both executives and regular salaried workers, plus benefits cuts for the latter.

GM hopes that the combined white-and blue-collar savings will be enough to convince Canadian officials to open up the coffers. For its part, the CAW says it'll use the GM negotiations as a model for how it'll deal with the other automakers seeking similar concessions. The Canadian developments come after a week in which the big story was GM's auditors' gloomy outlook on the company's ability to contintinue as a going concern. Stay tuned for another active news cycle this week as President Obama's auto industry task force heads to Detroit for powwows with automaker and union leaders. Everyone is in scramble mode right now because both GM and Chrysler need more money by the end of this month in order to keep the lights on. Thanks to Jarrett for the tip!

[Source: Reuters]

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