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Canada auto workers approve union agreement with Chrysler

  • Source: xinhua
  • [15:06 April 27 2009]
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The workers of the Canadian branch of Chrysler have voted in favor of a deal between their union and the automaker, which would serve as a precondition for Chrysler to partner with Fiat to avoid bankruptcy.

The deal was approved by 87 percent of those Chrysler Canada workers who voted, the Canadian Auto Workers Union (CAW) said in a release Sunday.

The company employs about 10,000 hourly workers and 1,000 white-collar employees at its facilities in three cities in the province of Ontario.

After a week of tense negotiations, the CAW announced Friday night that it had reached a tentative deal that will save the automaker 240 million Canadian dollars (192 million US dollars) a year.

The deal preserves workers' base wages and pensions, but cuts some of their benefits, including some health coverage, as well as tuition and car-purchase rebates.

It will achieve savings equivalent to the reduction of 19 Canadian dollars (15 US dollars) an hour in labor costs that Chrysler was demanding, CAW President Ken Lewenza said.

Chrysler has until April 30 to negotiate an alliance with the Italian automaker Fiat and also to reach deals with its American workers and its bondholders to qualify for US and Canadian government loans.

Without a restructuring plan that the governments find acceptable, Chrysler would likely file for bankruptcy protection or even liquidate its assets.