Agreement at GM Canada

CANADA: Yesterday evening (September 17), just hours short of a strike deadline, the Canadian Auto Workers reached a tentative contract agreement with General Motors of Canada. The three-year deal, subject to ratification by the CAW's 19,000 GM members, was described by the union's president, Buzz Hargrove, as "excellent" for the membership and "responsible" for the company. A highlight of the new agreement is GM's provision for $800 million in new investment in the company's Ontario plants, which the union says is not only a commitment to job security for CAW members but also to strengthening Canada's automotive industry. The proposed contract will also offer annual wage increases of 3 per cent a year for two years and 2 per cent in the third year (current hourly pay is $27.10 for assembly-line workers and $33.10 for electricians, mechanics and other tradespeople), a $1,000 signing bonus, extra time off the job including 3 additional holidays, and improved benefits for health care, retirement and child care. The CAW selected General Motors as its main bargaining target in early September, when full-time talks began. Prior to that, members at all Big Three automakers - GM, DaimlerChrysler and Ford - had voted overwhelmingly to give the union a strike mandate if union demands were not met. It is hoped the successful conclusion to the GM bargaining will set the stage for the IMF affiliate's upcoming negotiations with DaimlerChrysler and Ford. Note (1): Figures are in Canadian dollars, C$1 = US$0.6317 Note (2): On September 22, CAW GM members voted 72 per cent in favour of ratifying the agreement.