Union strikes deal with GM

The Canadian Auto Workers (CAW) union said it reached a tentative deal with General Motors, leaving Chrysler as the only Detroit carmaker that has not agreed to a new labour deal.

CAW President Ken Lewenza called it a difficult few days but said GM ultimately agreed to the pattern of a deal that the union reached with Ford earlier this week.

The union said earlier it could serve GM with a 24-hour strike notice after saying GM failed to meet the pattern of the Ford deal.

The union decided to keep working past a midnight Monday strike deadline after reaching a deal with Ford that night and extending its contracts with GM and Chrysler.

Workers stayed on the job as talks continued, but the union warned it could go on strike after giving GM and Chrysler 24 hours’ notice. They wanted the Ford contract to serve as a template for the other two companies.

Like the Ford deal, the GM agreement cuts wages for new hires and freezes pay for current workers. But it also gives them lump-sum payments to cover inflation and for ratifying the deal.

Under the Ford and GM deals, the companies will pay new workers 60% of the current top wage of 33.89 Canadian dollars (€26.69) an hour, according to the CAW. That would mean new workers would be paid around 20.33 Canadian dollars (€16).

They can move up the wage scale and reach the top wage in 10 years.

“We’re avoiding a permanent two tier wage system which was the stumbling block today,” Mr Lewenza said.

US workers at the Detroit carmakers approved a similar two-tier wage agreement five years ago, but in those agreements, workers do not automatically get the top wage after 10 years.