The CAW are about to accept the new contract offered by the Detroit Three, which includes a lower starting salary and a period of 4 years for a new worker to reach the union’s full hourly pay.
This proposal is similar to the one the UAW accepted in the US, and it would save the companies the same amount of money. Currently a Detroit Three new employee receives $24 per hour, which is 70% of the full salary, and after 6 years with the company he receives $34 per hour.
“We are fundamentally opposed to a two-tier system. We don’t think that does any good for the union or the company for the long run,” said Peter Kennedy, the CAW’s national secretary-treasurer. “One of the companies seems to be giving us a wink and a nod that they can work with this.”
The two-tier system has helped the automakers cut labor costs and the UAW to secure thousands of new jobs. A new worker in the US receives $15.78 per hour and UAW production workers that were hired before 2007 receive $28 per hour. Kennedy said that he hopes that the CAW will accept the terms before the current contract expires in four days.