The Canadian Auto Workers union has reached tentative agreement on a new four-year contract with General Motors of Canada. The new agreement follows the same pattern as the one reached with Ford earlier this week.
CAW President Ken Lewenza outlined some of the key details of the agreement during a press conference held at the Sheraton Centre Hotel yesterday evening.
The new agreement includes a $3,000 (US$3,077) quality and productivity bonus for workers upon ratification as well as cost of living lump sum payments (to be paid before the Christmas holiday period) of $2,000 (US$2,051) in each of 2013, 2014, and 2015.
Lewenza said the agreement offers protection of current pension benefits for existing workers and incremental improvements in benefits, including dental care.
The company agreed to the same ten-year new hire grow-in program where new hires start at $20.40 (US$20.95), which is equal to 605 of the current base rate, and grow in to full compensation after 10 years.
GM-specific aspects of the agreement included employment and investment commitments including a third shift in the Oshawa Flex assembly plant, starting early next year, which will create or maintain 900 jobs. Production will be extended on at least one shift, and possibly two, for an additional year at the Oshawa Consolidated Plant until June 2014. That represents an extension of at least 750 jobs (more if the second shift is extended).
GM also made firm commitments to a range of new engine and transmission investments and production in St. Catharines.
In total, the commitments GM is making will create, maintain, or extend 1,750 Canadian jobs and include at least $675 million (US$692.8 million) in additional capital spending over the term of the contract.
The company also confirmed in writing that they will meet the Canadian manufacturing commitment, negotiated with the Canadian and Ontario governments, through the life of this agreement.
The CAW will be presenting the proposed contract for ratification by union members in Oshawa, St. Catharines and Woodstock.