CAW reaches tentative GM deal

Source: Exec Canada

Date :15/05/2008 04:37:34

The Canadian Auto Workers (CAW) union has confirmed it has reached a tentative contract deal with General Motors, the world’s largest automaker.

Details on the deal are currently unavailable, but an announcement is expected soon.

Yielding the axe

The new tentative deal with GM comes just days after the automaker said it will shut down its transmission plant in Windsor, Ont., within two years. The plant employs around 1,400 salaried and hourly workers.

GM said the closure was due to a market shift from the four-speed automatic transmissions made in Windsor to more fuel-efficient six-speed transmissions.

A brighter future

The CAW said it is also close to a deal with Chrysler.

The union began meeting with GM this week and Chrysler last week in the hopes of matching an earlier deal made with Ford, which freezes base wages for the length of the agreement.

May 15, 2008