CAW reach tentative deal

[rickaren]

GM, CAW reach tentative deal

Posted Friday, May 22, 2009, 2:13 pm in Employee News

General Motors Corp. and the Canadian Auto Workers union have reached a tentative agreement in negotiations to reduce labor costs as mandated by the Canadian and Ontario governments as a condition of securing government loans, The Detroit News reported today.

CAW President Ken Lewenza said the agreement preserves core wages and benefits, the paper said. Key to a settlement was restructuring of the pension plan, the News said.

Lewenza said GM has made a commitment to no longer underfund its pension fund, and the new funding levels will bring its contribution to the same levels as Chrysler LLC and Ford Motor Co. within a year, the story said. (The Detroit News)

[rickaren]

CAW votes to accept cost-cutting deal with GM

Posted Tuesday, May 26, 2009, 9:48 am in Employee News

Canadian Auto Workers members voted 86 percent in favor of a cost-cutting deal with General Motors Corp.’s Canadian unit as the automaker bids to qualify for more government loans and assure its future in Canada, the Associated Press reported.

Union leader Ken Lewenza said his members had no choice but to vote for the deal, the AP story said. Lewenza said the agreement allows GM Canada to meet the cost benchmarks set by the federal Canadian and provincial Ontario governments, namely making cuts to become competitive with nonunionized Toyota Canada, the news service said. The deal also stipulates that GM’s car assembly and parts plants in Ontario will stay open, the story said.

According to the AP, the tentative deal with GM Canada stipulates that the starting pay rate for new hires will be 70 percent of the established rate with increases of 5 percent per year for six years. New hires will be entitled to the same retiree health benefits, funded either through a new Health Care Trust or by the company. (Associated Press/Detroit News)