GM workers say yes to cost-cutting deal
Last Updated: Wednesday, March 11, 2009 | 9:50 PM ET
CBC News
Related
Internal Links
Video
- Marivel Taruc reports: GM workers say yes to cost-cutting deal (Runs: 4:15)
- Play: Real Media »
- Play: QuickTime »
Members of the Canadian Auto Workers have voted overwhelmingly in favour of a cost-cutting deal with General Motors.
Around 87 per cent voted in support of the deal, reached over the weekend, which includes concessions such as a wage freeze, the elimination of an annual bonus and reduction in paid time off.
"These changes are difficult for our members and retirees, but CAW members at GM agree that accepting these changes is the best choice under the circumstances," CAW national president Ken Lewenza said.
The results came Wednesday night following a two-day vote by 10,000 members. The deal is contingent on GM winning federal and provincial support.
"Our labour costs did not cause this global crisis, and labour concessions — no matter how deep they go — cannot solve that crisis," Lewenza said.
"However, our members understand that the CAW must be part of the solution, and we have done that."
The deal covers CAW members at GM's Ontario operations in Oshawa, St. Catharines, Woodstock and Windsor and includes concessions by the union that add up to an estimated $148 million.
The deal would extend the current collective agreement for an additional year to September 2012, with no reduction in average assembly-worker base pay of $34 an hour.
It would also eliminate a $1,700 annual "special bonus" and reduce paid time off to 40 hours a year from 80 hours. This time is in addition to vacation entitlements ranging up to five weeks annually for high-seniority workers, reduced last year from six weeks.
GM workers would also for the first time make payments toward their own health benefits — $30 a month per worker family.
Earlier Wednesday, Ontario Premier Dalton McGuinty said the Ontario government cannot guarantee autoworkers will still have their jobs even if they make concessions.
McGuinty was responding to a question at Queen's Park from NDP Leader Andrea Horwath, who called on the province to ensure long-term job security for Ontario autoworkers as part of the $4.2-billion bailout package the federal and Ontario governments have pledged for the auto sector.
"They and their families want assurances that their sacrifices are not for naught,… that the company doesn't have to come back to them for more," Horwath told the legislature.
"I wish I could provide the assurance that the leader of the NDP is seeking on behalf of those families," McGuinty replied.
"But what assurance I can provide is that we will work as hard as we can, Speaker, together with all of our partners, to maintain our share of production here in Ontario."
McGuinty also said he's confident negotiations aimed at securing a bailout for the auto industry won't be derailed by politics.
On Tuesday, federal Industry Minister Tony Clement called the tentative labour deal at GM just "one piece of the puzzle." He also said Ottawa wants to look at a range of issues, including how the company estimates its costs, before acting on a bailout.
"Ford and Toyota need General Motors to survive. They need Chrysler to survive because if they don't survive, their whole supply chain becomes dysfunctional. We're all in the same boat together and we all have to find a solution together," he said.
With files from the Canadian PressShare Tools
Latest Toronto News Headlines
- Toronto throws open its doors this weekend
- More than 130 buildings are open to the public this weekend as part of Doors Open, Toronto's annual celebration of accessible architecture. more »
- TTC shuts section of Yonge subway this weekend
- The TTC is going to shut down a large section of the Yonge-University-Spadina subway all weekend for track construction. more »
- Toronto vet tranquilizes wayward deer
- CBC cameras capture a Toronto vet's dramatic takedown of deer wandering near a busy highway on Friday. more »
- Toronto Marlies down Barons to advance to AHL final
- Simon Gysbers scored the game-winning goal to propel the Toronto Marlies into the American Hockey League's Calder Cup final after defeating the Oklahoma City Barons 3-1 on Friday. more »
Top News Headlines
- Aylmer triple stabbing leads to first-degree murder charges

- The estranged partner of a young mother who was stabbed to death along with her parents at their home in Aylmer, Que., has been charged with first-degree murder Friday. more »
- More than 90 killed in central Syria, activists say
- Activists have raised the number of those reportedly killed by regime forces in a district of central Syria to more than 90. more »
- The risks and responsibilities of taking on Mt. Everest

- The deaths of five climbers last weekend on Mt. Everest, with more summits underway this weekend, fuels the debate about the risks and responsibilities of high altitude climbing. more »
- B.C. premier unhappy with disgraced Mountie's transfer
- B.C. Premier Christy Clark says she is not happy with the RCMP decision to transfer a disgraced Alberta Mountie to the West Coast. more »
- Everest victim's husband says family not seeking government help
- Serial carjacker gets life term for fatal crash
- 'Save me' last words of Mount Everest climber
- Toronto throws open its doors this weekend
- 'Gay-straight alliances' get green light under Ontario bill
- TTC shuts section of Yonge subway this weekend
- Ottawa promises $140M for Rouge Natural Urban Park
- Toronto vet tranquilizes wayward deer
- Legoland coming to Toronto area next spring

