GM and CAW have finally reached a tentative four-year agreement last night, leaving Chrysler the last US automaker without a union deal.
According to the agreement, GM will ‘create or maintain’ 1,750 jobs and will invest C$675 million ($692 million) in its facilities in Canada. The Detroit-based automaker has about 5,600 employees in Ontario and Oshawa, where it manufactures the Cadillac XTS and the Chevrolet Impala.
The first US automaker with which the CAW reached an agreement was Ford, which closed a deal on September 17th, offering bonuses and adding 600 new jobs, eliminating the cost-of-living raises. The CAW extended the negotiating deadline with GM and Chrysler sating that if progress faltered they will offer a 24-hour notice before striking.
“Now we have Ford establishing the pattern, we have General Motors accepting the pattern, and tomorrow we go to work with Chrysler,” union President Ken Lewenza said at last night’s news conference.
GM agreed with the lump-sum payments that Ford also accepted, that is C$2,000 lump-sum payments and a C$3,000 ratification bonus. GM also agreed to close the Oshawa plant in Ontario in June 2014 instead of June 2013 and temporary workers will be hired only in peak periods when new models go into production.