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CAW Offers Concessions to Detroit Three
The Canadian Auto Workers union, which faces a Monday deadline in its contract talks with Chrysler, Ford and General Motors, has submitted a new proposal with concessions on wages and pensions for new hires.
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The Canadian Auto Workers union, which faces a Monday deadline in its contract talks with Chrysler, Ford and General Motors, has submitted a new proposal with concessions on wages and pensions for new hires.
In return, the union wants the carmakers to commit to future production in Canada. Contentious issues that remain on the table include wages and the companies' desire to substitute profit sharing for cost-of-living pay increases.
The CAW says it is willing to lower the starting wage for new workers and stretch the time it takes them to reach full pay to 10 years from six. The offer represents a softening of the union's opposition to a two-tier wage system.
Peter Kennedy, the union's secretary-treasurer tells reporters that new hires could be required to contribute to their pension plan something existing workers don't do.
Kennedy also says the CAW would accept limits on the right of union members to retire with full pension and benefits after 30 years of service. New hires would not receive any "30-and-out" option.
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