TORONTO (Reuters) - General Motors of Canada and the Canadian Auto Workers union have reached a tentative agreement on a new labor contract, narrowly averting what would have been the first strike at Canada's biggest automaker in nine years.þþThe two sides agreed to the deal about 40 minutes before the midnight (0400 GMT) deadline on Tuesday and steered clear of a walkout by some 17,500 union members at GM Canada.þþ``After some tough negotiations we have reached a tentative agreement,'' said CAW president Buzz Hargrove. ``This has been a very difficult and challenging set of negotiations with General Motors and of course we anticipated that.''þþThe union, which secured investments in some Canadian plants, also said it expects about 1,000 fewer workers at GM Canada by 2008, but most should come through attrition.þþTalks between the two sides were pushed close to the strike deadline mainly due to job security issues at the automaker's St. Catharines plant. The union said GM Canada backed down from plans to demolish part of a plant in St. Catharines.þþGM Canada is also committed to making investments at plants in Oshawa, Ontario where the Silverado and Sierra pickup trucks are made as well as the plant that makes the Impala and Monte Carlo.þþGM Canada, whose U.S.-based parent General Motors Corp. is losing money as its market share crumbles and labor costs rise, said it liked the deal as it allows for a reduction in its overall labor structural costs.þþ``We think it's a good agreement but it was not easy to come by,'' said Al Green, vice president of personnel and operations for GM Canada. ``As we all know these are extremely troubled times for the company and for this industry.''þþThe agreement at GM Canada is still subject to a ratification vote by the company's unionized workers this weekend.þþUnionized workers at GM Canada last went on strike in 1996 for 22 days over the issue of contracting out work.þþThe agreement with General Motors followed the CAW's pattern bargaining talks with Ford Motor Co. of Canada and DaimlerChrysler Canada earlier this month.þþIn pattern bargaining, the union reaches a deal on wages, benefits and other issues with its target company and then uses that agreement in negotiations with the other companies.þþThe CAW opened negotiations with Ford Canada, where it set the pattern for wage increases of 45 Canadian cents an hour in the first year, 30 Canadian cents an hour in the second, and 30 Canadian cents an hour in the third.þþThe deal also included a reduction of about 1,100 jobs as Ford will close its casting plant in Windsor, Ontario and phase out production of the V-6 engine at its Essex engine plant, also in Windsor.þþTalks then shifted to DaimlerChrysler, where workers overwhelmingly ratified an agreement last weekend that includes job cuts over the course of the contract and modest pension and benefits increases.þþLooking back at the negotiations, Hargrove admitted it was toughest reaching a deal at GM Canada.þþ``I keep thinking it's going to be easier, and I must say it was at the other two companies,'' he said.þþ
Source: NY Times
