(Canadian Auto Workers) CAW appears ready to accept lower starting wages

[alp227]

Source: CBC

The Canadian Auto Workers union appears prepared to make a key concession in contract negotiations with the three big U.S. automakers if they offer an acceptable tradeoff.

The Globe and Mail reported in its online edition Thursday that the CAW has laid out a proposal to cut wages for new employees at the Canadian operations of General Motors, Ford Motor and Chrysler.

CAW president Ken Lewenza couldn't be reached for comment early Thursday, but a union official says there's been an offer to ease up on wages for new employees in exchange for a commitment to new investments at the Canadian operations.

The Globe report says the union is also prepared to extend the time frame on a current "two-tier" system of paying new employees at a lower scale for several years.

Read more: http://www.cbc.ca/news/canada/windsor/story/2012/09/13/wdr-caw-lower-wages-auto-talks.html

[JoeyT]

1. Cutting wages for new workers does

little more than undermine the union. Short term gains for long term losses.

Everyone that's hired after this point will think "Well hell, why should I bother with this union thing? They negotiated lower pay for me AND want me to pay them to do it? Screw that!".