Strike avoided in last-minute deal

CANADA: With just minutes to go before its 11:59 p.m. strike deadline on October 15, the Canadian Auto Workers' union reached a tentative settlement in contract negotiations with DaimlerChrysler Canada. The sticking points throughout the talks were over the automaker's lack of commitment to save 1,275 production jobs at the Pillette Road commercial van plant in Windsor, Ontario, which it plans to close in July 2003, as well as company attempts to extract workplace concessions dealing with scheduling, overtime and seniority rules. The new three-year agreement is to include provision for an investment worth C$1 billion (US$631 million) for a new plant in Windsor, which will open in late 2005 and employ approximately 3,000 people. In the meantime, much of the Pillette Road workforce will be transferred to another plant in Windsor where production is being increased, with the remaining workforce to be offered early retirement packages. DaimlerChrysler has also withdrawn the workplace concessions it was seeking and will match the wage increase of 13 per cent over three years, as was recently agreed in contracts for CAW workers at Ford and General Motors. A ratification vote by the CAW's 13,000 DaimlerChrysler members will be held on October 20. The CAW, with a total membership of approximately 260,000, is affiliated at international level to the International Metalworkers' Federation. Note (1): In August 2002, DaimlerChrysler had also announced job cuts in Brazil, but following strong opposition to these plans, workers and their union, the ABC Metalworkers' Union, reached an agreement with the company to cancel the dismissals. For more information, see associated link. Note (2): On October 20, CAW DaimlerChrysler members voted in favour of the new three-year agreement. Overall voting was 91% for production workers, 80.5% for skilled trades and 92.8% for the technical, office and professional employees.