TORONTO (AP) - Canadian Auto Workers at General Motors Corp. and Chrysler
LLC have ratified a new labor agreement, wrapping up this year's round of
negotiations between the CAW and the major automakers.
CAW members at Chrysler's three Ontario-based plants voted 87 percent in
favor of the new agreement Saturday, making it the strongest approval rating
among the three giant auto companies. GM workers voted 84 percent in favor of
its new agreement earlier Saturday, and Ford Motor Co. workers voted 67 percent
in support of its new contract two weeks ago.
CAW President Buzz Hargrove said the strong approval by the membership is
evidence that the union did the right thing in negotiating an early settlement.
"I have no doubt in my mind that going into early bargaining with General
Motors, Ford and Chrysler was the best thing for our members," Hargrove said in
a statement Saturday. "With the new product commitments contained in the
agreement, our members will be better equipped to weather the economic storm
currently devastating the auto industry."
The union reached historically early tentative agreements Thursday with both
GM and Chrysler, replacing contracts that expire in September.
As with an agreement ironed out with Ford two weeks ago, the union said the
three-year deals with Chrysler and GM keep the automaker's labor costs
essentially the same as they are now, preventing a two-tier wage system used in
the United States where new hires would be paid about half the hourly wages of
older employees.
The deals include cost-of-living wage adjustments in the second and third
years of the agreement and also improve benefits and strengthen health and
safety regulations, the CAW said.
Telephone calls seeking comment from Chrysler and GM about the ratification
were not immediately returned.
The Chrysler agreement, which closely follows an agreement reached with Ford
two weeks earlier, includes a commitment to launch the new C-series vehicles in
2010 at its Brampton, Ontario, plant. The new agreement covering 8,000 workers
also confirms that the Windsor, Ontario, plant will continue to be the lead
producer of minivans in North America.
Chrysler also agreed to keep the Etobicoke Casting plant open in Ontario
until June 2011, with the intention of selling the plant or making it into a
joint venture. Chrysler had threatened to close the plant.
The GM agreement covers 13,000 workers at Ontario-based facilities in
Windsor, Oshawa, St. Catharines, and Woodstock.
Under the deal, the plant in Oshawa will begin building a new Camaro sports
car, along with a rear-wheel drive car. The deal also preserves one shift at the
truck assembly factory in Oshawa until 2009.
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