By on September 21, 2012

The CAW and General Motors have reached a tentative agreement, sticking closely to the “pattern” set by negotiations between Ford and the CAW.

The GM deal retains many of the same elements as the Ford agreement; a 10 year progression to full wages, a revised pension plan for new hires and lump sum payouts rather than wage increases and cost of living payments.

GM will add a third shift to the Oshawa flex line, add 100 jobs to their St. Catharines, Ontario powertrain plant and keep the Oshawa consolidated line open until 2014, rather than closing it in 2013. 1,750 jobs will be either created or maintained via GM’s actions. GM will also invest $675 million into Canadian manufacturing over the four year term.

In the immediate future, the CAW and Chrysler will have to come to some sort of agreement. Tony Faria, a professor at the University of Windsor and a noted auto industry expert, told the CBC that “Chrysler will agree to the same pattern, very reluctantly”. Faria also noted rather ominously that the end of these negotiations could be the start of the Big Three looking to move production of their vehicles to cheaper locales.

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6 Comments on “GM, CAW Reach Tenative Deal...”

  • avatar

    Poor Sergio. Rather than getting to swing his corporate, uh, manhood by putting it to the CAW, He slaps himself upside his own head as the last negotiator in a pattern-bargaining agreement that he can’t afford to lose.

    So now it’s more like showing his ass to the neighborhood. Again.

    Between this and his having to answer for his attacking labor saber-rattling to the Italian government, maybe he’ll get some inspiration and work with the people who actually build his cars instead of trying to make Brownie Points by taking cheap shots at them.

    • 0 avatar

      @jrhmobile….Mmmmm? I got a gut feeling that Sergio, sorta knows he lost this battle. That being said, he ain’t going to crawl back into a cave a and lick his wounds.

      IMHO… Sergio won’t lose the next one.

  • avatar

    And there you have it folks. Lets keep in mind,that as part of the Canadian bail out of 2009,GM needs to maintain 16 percent in Canada.

    It looks like for the short term GM has met that. As far as the consolidated line goes? Me thinks the Impala may go the same route as the Crown Vic. Maybe two years of rentals cop cars,and taxis.

    As a retired GM Canada guy, I’m glad we have stopped the bleeding….for now.

    • 0 avatar

      Mikey, the 16 percent figure is a great point and I feel like a dumbass for overlooking it. Very much a band-aid solution to keep the consolidated line open to meet those targets. I’m curious to see what’s going to happen between now and 2014 when that line is done.

      • 0 avatar

        @Derek… Between now and 2014? As we all know, predicting the auto industry is an iffy science,at best.

        As far as a band-aid solution goes? ….Exatly, the CAW has only bought a couple of years.

  • avatar

    “Faria also noted rather ominously that the end of these negotiations could be the start of the Big Three looking to move production of their vehicles to cheaper locales.”

    To be honest, this was probably going to happen regardless of the deal struck. Turns out Canadian Dutch disease is a real thing.

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