This is from the Star.
Imagine signing a contract that freezes wages, suspends cost of living allowances and reduces vacation pay. This reflects the weakness of the auto industry and even more the weakness of labor. Although there is not the two tier system as in the US there is movement in that direction since new workers will have to work longer to receive full wages.
Most General Motors workers ratify three-year contract TheStar.com - Business - Most General Motors workers ratify three-year contract
May 17, 2008 Tony Van AlphenBusiness Reporter
Workers at most General Motors operations in Canada have quickly ratified a tentative three-year contract that freezes wages, suspends cost of living allowances and reduces vacation pay.
Officials for the Canadian Auto Workers said last night that union members in the largest locals in Oshawa, St. Catharines and Windsor had voted in favour of the contract, assuring overall acceptance.
The union, which represents about 13,000 GM employees, won't release final results until today when workers in Woodstock vote on the deal.
CAW and GM negotiators reached the deal on Thursday, four months before expiry of their contract. The union also bargained a tentative deal at the same time with Chrysler LLC for 9,600 workers here.
The provisions are similar to terms Ford Motor Co. of Canada Ltd. and the union negotiated this month for about 9,000 workers.
CAW president Buzz Hargrove said the union pressed for early deals as worsening conditions in North America's struggling auto industry could weaken members' bargaining position in the summer.
GM, the country's biggest auto maker, announced earlier this week that the company would close its 45-year-old transmission plant in Windsor and eliminate 1,400 jobs in 2010.
As well as a wage freeze and suspension of a cost of living allowance until the end of 2009, new workers won't receive full wages for three years, instead of two.
As part of the deal, GM also indicated it would retain a second shift at its Oshawa truck plant but employees will work two weeks and then be off for two weeks. The company also plans to add another model to its new flexible manufacturing plant nearby in late 2011.
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