Just days before General Motors is expected to be forced into bankruptcy by the Obama administration, the automaker has apparently reached a tentative deal with the Canadian Auto Workers union. The deal would substantially reduce GM’s labor costs in Canada – a stipulation for receiving additional aid from Canada and the province of Ontario.
CAW President Ken Lewenza told the media that the agreement will preserve core wages and benefits and that it is mostly a restructuring of the pension plan. The new pension funding levels will apparently bring GM equal to Ford and Chrysler .
“It has been the toughest two weeks of our collective experience,†Lewenza said on a conference call with reporters. “We’re out here talking today about preserving the Canadian auto industry.â€
Yesterday, the automaker reached a deal with the United Auto Workers.
