With over 86% of the votes, the vast majority of GM employees members of the CAW (Canadian Auto Workers union) ratified the agreement reached over the weekend between their managers and GM representatives.
This agreement, without which the governments of Canada and Ontario would not supply financial assistance, includes numerous changes particularly in terms of work organization and completely restructures the management of the pension fund.
For instance, GM will be investing extra money into the employee pension fund to equal the sums paid by the other auto giants. On the employees’ side, they’ve accepted a wage freeze for a few years (2015), but no other changes to hourly rates or direct benefits were necessary. The adopted changes reduce GM’s total expenses by $22 per hour, ensuring the company remains competitive against the Japanese automakers established in Canada.
“Although we were forced to make a number of important sacrifices, the support we received from our members is proof that they recognize the incredible challenges the industry is facing,” said president of the CAW, Ken Lewenza, in a press release.
Of course, GM managers said they were satisfied with the agreement and especially the overwhelming employee endorsement. “We appreciate the shared sacrifices our employees have made to better position GM in these very challenging times by meeting competitive cost benchmarks in the industry. The ratification of the new agreement is a critical step towards GM Canada's successful restructuring into a stronger, more viable company in the near future,” said GM in statement.
GM Canada employs around 12,000 people in its Oshawa, St. Catharines, Woodstock and Windsor plants. The agreement was reached with the union, and, coupled with the closing of nearly 300 dealerships across the country, should allow the company to continue manufacturing on Canadian soil.
photo:General Motors
This agreement, without which the governments of Canada and Ontario would not supply financial assistance, includes numerous changes particularly in terms of work organization and completely restructures the management of the pension fund.
For instance, GM will be investing extra money into the employee pension fund to equal the sums paid by the other auto giants. On the employees’ side, they’ve accepted a wage freeze for a few years (2015), but no other changes to hourly rates or direct benefits were necessary. The adopted changes reduce GM’s total expenses by $22 per hour, ensuring the company remains competitive against the Japanese automakers established in Canada.
“Although we were forced to make a number of important sacrifices, the support we received from our members is proof that they recognize the incredible challenges the industry is facing,” said president of the CAW, Ken Lewenza, in a press release.
Of course, GM managers said they were satisfied with the agreement and especially the overwhelming employee endorsement. “We appreciate the shared sacrifices our employees have made to better position GM in these very challenging times by meeting competitive cost benchmarks in the industry. The ratification of the new agreement is a critical step towards GM Canada's successful restructuring into a stronger, more viable company in the near future,” said GM in statement.
GM Canada employs around 12,000 people in its Oshawa, St. Catharines, Woodstock and Windsor plants. The agreement was reached with the union, and, coupled with the closing of nearly 300 dealerships across the country, should allow the company to continue manufacturing on Canadian soil.
photo:General Motors