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GM, Chrysler reach CAW deals


The Canadian Auto Workers has tentative labor pacts with General Motors Corp. and Chrysler LLC, the union said today.

The deals with both automakers will keep some Canadian factories open for several years, but also include painful job cuts for the union.

GM has agreed to continue producing the full-size sedans and trucks at two plants in Oshawa, Ontario. Chrysler will continue to produce minivans at its Windsor plant, as well as continue building the large cars in Brampton, Ontario.

CAW President Buzz Hargrove was unable to prevent GM from closing a Windsor transmission factory. Chrysler will go ahead with plans to close a casting plant.

"We've got a number jobs secured, and we've dealt with job losses at both companies," Hargrove said Thursday in announcing the deals.

Hargrove said the union and GM agreed on financial packages for workers who will be out of a job when the Windsor transmission factory closes in 2010. GM announced this week plans to close the Windsor plant, which builds four-speed transmissions. GM also recently announced 900 job cuts at a plant in Oshawa, Ontario.

The CAW ratified an early labor pact with Ford Motor Co. in April, and hoped to get GM and Chrysler to quickly agree to similar deals.

This year's negotiations were expected to be tough for the CAW, with the union's leverage weakened by the strengthening Canadian dollar and the need for massive capacity reductions by Detroit's Big Three. The Canadian car industry is under pressure to cut costs after years of boasting cheaper labor relative the United States.

A weak U.S. dollar and last year's cost-cutting labor deals between Detroit's automakers and the United Auto Workers union have cut the cost of building cars and trucks in America.



[source]


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