CAW Turns to Chrysler After Settling with GM

The Canadian Auto Workers union has reached a tentative agreement on a new four-year contract with General Motors that hews closely to the terms of the union's deal with Ford earlier this week.

The accord is subject to ratification by CAW members at GM. The union did not say when the vote would occur.

The new GM pact freezes wages. But each worker would receive a C$3,000 (US$3,070) ratification bonus and a C$2,000 cost-of-living bonus in each of the next three years, the CAW says.

The union avoids the creation of a permanent two-tier pay system. New workers will be hired at 60% of the top wage. But their pay will gradually rise over 10 years to the level of veteran employees.

The company agreed to delay the closing of an assembly line in Oshawa, Ont., by a year to June 2014. GM also agreed to invest C$675 million in its Canadian facilities.

The company will add a second shift on the remaining Oshawa line in 2014 and add about 100 jobs at its engine plant in St. Catharines, Ont. The CAW says the commitments should allow its GM members currently on layoff to find new positions.

The union will now turn its full attention to negotiations with Chrysler. The company has been reluctant to indicate on whether it is willing to follow the blueprint set at Ford, according to the CAW. It says Chrysler has not yet submitted a revised proposal for wages and benefits.