GM, Canadian union agree to wage, pension freeze

[cal04]

Source: AFP

The Canadian Auto Workers announced a tentative deal with General Motors on Sunday to freeze wages and pensions, and cut paid vacations, as part of GM's North America restructuring.

The agreement would "generate substantial cost savings for the company while protecting current base wage rates and current pensions," CAW President Ken Lewenza said in a statement.

These savings are estimated at tens of millions of dollars, based on labor cost reductions of "several dollars per hour" for each of GM's roughly 10,000 unionized staff in Ontario province.

As well, GM's Canadian operations would retain an "investment advantage" over US plants, Lewenza said.

Read more: http://news.yahoo.com/s/afp/20090308/bs_afp/canadausautouniongm_20090308173814

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'Significant sacrifices' in tentative deal with GM: union
http://www.cbc.ca/canada/story/2009/03/08/caw-gm.html

[napi21]

1. That's a heck of a lot better than losing the jobs completely!

GM obviously needs to make a lot more changes but if something like this could play a big part in their salvation, then I hope the US union workers do the same.

[Ravachol]

2. The big difference here...

Is that GM doesn't have to pay for healthcare plans. It's a big plus when you think about it. Really lowers the cost of employing someone.

[napi21]

4. One more reason for Obama's new HC plans to advance. I think

the time is right for all sides to reach an agreement. It would equal the playing field for employers, take a lot of the burden off of all people who are employeed in low paying jobs that don't offer, or the employees can't afford hc, and hopefully reduct the # of people who are forced into bankruptcy because of medical bills.

[blue_onyx]

7. It's why more vehicles are made in Ontario

than are produced in Michigan. Making companies cover the cost of health care is a big disadvantage for US companies.

[defendandprotect]

3. This is a downward spiral our government is subsidizing and giving license to . . .

Again -- we should take over the plants and the workers and begin

building electric cars and turning some of the gas-guzzlers on our roads

into hybrids.

[Mithreal]

5. "subsidizing and giving license" - Greenspan intended it, right? nt

[defendandprotect]

6. Right . . . Throw Paulson and Rubin in there, as well -- ?

[WriteDown]

8. There's an easier solution...

Just make it illegal for any citizen to own an SUV or Truck unless you have a special license. The same with houses. Just make it illegal for anyone to own anything over a 2500 sq ft house. In fact, it may be a good idea to require a license to have any children as well. Forget nationalizing the companies. Nationalize THE PEOPLE. :eyes:

edited for clarity.