CAW Reaches Tentative Deal With GM/Chrysler

Samir Syed
by Samir Syed

CTVNews reports that the Canadian Auto Workers (CAW) has reached deals with both GM and Chrysler for its Ontario members. The agreements mirror those that the CAW obtained from Ford. According to the official story: "Workers will see their wages frozen for three years in exchange for improvements in other areas." "Other areas?" Such as not getting fired in the first place? The crux of the deal: Buzz Hargrove successfully delayed the inevitable. GM-Oshawa's planned shift reduction is put off until 2009, and Chrysler's Etobicoke plant, on death row for over a decade, will have its life extended to 2011. Hargrove is spinning the wage freeze as a victory, noting that he's "done the very best to protect as many jobs as we could and protect and support people who won't have a job"– despite failing to secuire long-term plans for either of the two plants. We now return you to our regular discussion of American Axle's ongoing strike.

Samir Syed
Samir Syed

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  • Mikey Mikey on May 16, 2008

    Troonbop:line apes?Come on down to the ratification at 3:PM today and expand on you opinion at the open mic.I will personally escort you in.

  • Landcrusher Landcrusher on May 16, 2008

    mikey, just ignore the troll. I am not sure if I am what you are looking for, but I am a union detractor who used socialized medicine while living in Canada. They put my life at severe risk for nearly 24 hours trying to avoid giving me a test that any US hospital would have given me as fast as they could squeeze me in. Certainly in less than 3 hours. Once they did give me the test, they then had to give me emergency surgery immediately. The whole system just stank. I know that GM and the UAW are lobbying for socialized medicine in this country, and I can tell you that it's a much bigger burden on your grandchildren than CO2 or deficit spending are. The system will sap this country until everything is like GM and Detroit.

  • 50merc 50merc on May 16, 2008

    mikey, I read the comments on the CTV story. Lots of rage, but at least they kept the expletives out. Every day I'm thankful for TTAC's anti-flaming policy. From the CTV article: "Thursday's agreements will: * Freeze wages at $34 per hour this year * Cut annual vacations by one week for a one-time payment of $3,500 * Eliminate a $25,000 retirement allowance * Include a prescription drug co-pay of 10% The new GM contract deal postpones the planned closure of a shift at GM's Oshawa plant until 2009." [How does that compare with other industries? Still at or near the top, I'm sure. Do G/F/C lose lots of workers to make more money elsewhere?] "The CAW was also able to postpone the closure of a plant in Etobicoke which Chrysler had been trying to shut down for the past 15 years, Hargrove said. 'We weren't able to get it into the agreement but we did extend its life until mid-2011,' he said at a news conference Thursday afternoon. He noted that it was much cheaper for Chrysler to purchase the parts rather than have them manufactured." "But some experts fear that by not giving up more, the Canadian Auto Workers may be making it too expensive to build cars in Canada for the long term." 'At the end of the day, the Canadian operations are $20 an hour more costly than any other operation in the world for GM, Ford and Chrysler. Why would they put up with that longer term, when they have a choice,'auto analyst Dennis Desrosiers told CTV News." Indeed, why would G/F/C put up with that? Because for them, the CAW is a monopoly. So the choice becomes, either pay up or bug out. A prosperous Big 3 could afford to placate the union. But the Big 3 are no longer prosperous.

  • George Labrador George Labrador on May 17, 2008

    The CAW got the best deal they could with the so called Big 3 ie 2.8! Its also Buzz's last kick of the Can as he nears retirement from the CAW, good chance that Cerberus will spin off Chrysler by year's end according to sources in Detroit, maybe Nissan will buy them out, who knows what the future holds. As a Canadian I dont think that Ontario should be giving Taxpayer money to these foreign firms whether they be USA owned or Asian owned! after all they are all investor owned.