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CAW, GM Reach Tentative Contract Agreement

Manufacturing.Net - May 15, 2008

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TORONTO -- A tentative contract deal has been reached between the Canadian Auto Workers union and General Motors of Canada.

A spokeswoman for the union did not release details this morning, but CAW president Buzz Hargrove was preparing to meet the media.

Negotiations had continued overnight as the Canadian Auto Workers attempted to reach early agreements with GM and Chrysler, following its earlier settlement with Ford of Canada which the union aimed to use as a pattern.

The existing contracts between the CAW and the automakers do not expire until September.

The union began meeting with GM last week and Chrysler this week, covering a total of 22,000 workers, seeking commitments for new products and investments in Ontario assembly and parts plants, as well as attempting to stem job losses. GM announced this week that it plans to close its Windsor transmission plant.

The Ford contract, covering 9,000 employees, freezes base wages, halts quarterly cost-of-living adjustments until late 2009 and trims a week's vacation in return for $3,500 one-time payments, but ensures base wages stay constant.


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