Canadian Auto Workers union, GM agree on contract

Canada's auto industry long had an advantage over the U.S. industry because Canada has free health care and the Canadian dollar was weak, but those advantage no longer exist as the Canadian dollar is almost at par with the U.S. dollar.

Ken Lewenza, head of CAW's Chrysler bargaining team, called negotiations tough late Wednesday.

"We're not dealing with companies that have a lot of cash here. We're dealing with companies that are in market decline," Lewenza said.

GM recently announced the closure of a plant in Windsor, Ontario. About 1,400 workers will lose their jobs. GM also recently announced 900 job losses at a plant in Oshawa, Ontario.

Ontario Premier Dalton McGuinty said he is prepared to give GM more taxpayers' money for new projects, despite the layoffs.