Chrysler, GM workers in Canada ratify 3-year deals

CAW members at Chrysler's three Ontario-based plants voted 87 percent in favor of the new agreement Saturday, making it the strongest approval rating among the three giant auto companies. GM workers voted 84 percent in favor of its new agreement earlier Saturday, and Ford Motor Co. workers voted 67 percent in support of its new contract two weeks ago.

CAW President Buzz Hargrove said the strong approval by the membership is evidence that the union did the right thing in negotiating an early settlement.

"I have no doubt in my mind that going into early bargaining with General Motors, Ford and Chrysler was the best thing for our members," Hargrove said in a statement Saturday. "With the new product commitments contained in the agreement, our members will be better equipped to weather the economic storm currently devastating the auto industry."

The union reached historically early tentative agreements Thursday with both GM and Chrysler, replacing contracts that expire in September.

As with an agreement ironed out with Ford two weeks ago, the union said the three-year deals with Chrysler and GM keep the automaker's labor costs essentially the same as they are now, preventing a two-tier wage system used in the United States where new hires would be paid about half the hourly wages of older employees.

The deals include cost-of-living wage adjustments in the second and third years of the agreement and also improve benefits and strengthen health and safety regulations, the CAW said.

Telephone calls seeking comment from Chrysler and GM about the ratification were not immediately returned.

The Chrysler agreement, which closely follows an agreement reached with Ford two weeks earlier, includes a commitment to launch the new C-series vehicles in 2010 at its Brampton, Ontario, plant. The new agreement covering 8,000 workers also confirms that the Windsor, Ontario, plant will continue to be the lead producer of minivans in North America.

Chrysler also agreed to keep the Etobicoke Casting plant open in Ontario until June 2011, with the intention of selling the plant or making it into a joint venture. Chrysler had threatened to close the plant.