Canadian Auto Workers union members at General Motors and Suzuki ’s joint-venture CAMI plant in Ingersoll, Ontario have approved a plan to cut wages and benefits in order to ensure production for the next three years.
Passed by a wide margin of CAMI’s 2,250 CAW workers, the plan will mirror concession made with other unions prior to GM’s bankruptcy filing. In return, GM has guaranteed production at the CAMI plant for the next three years.
“Our workers recognized the importance of long-term stability, and although no one wanted these contract changes, I believe stability is what we achieved with this new agreement,” said Mike Van Boekel, the CAW’s chair for the CAMI plant.
Following the blueprints of previous contract negotiations, the new deal will freeze wages and benefits, and will also bring base wages in line with GM’s companywide base. The agreement will also shift some health care responsibilities to the union, according to Automotive News.
The CAMI plant currently builds the Chevrolet Equinox and the GMC Terrain . The plant also produces the Suzuki XL7, but production of the slow-selling SUV was suspended in May. Suzuki says it is committed to the CAMI plant but hasn’t announced a timeframe for production to restart. Suzuki’s U.S. sales are down more than 55 percent this year.
