Industry observers say the weekend cost-cutting deal between General Motors and the Canadian Auto Workers doesn’t go nearly far enough.
Union president Ken Lewenza says it preserves Canada’s “investment advantage” over U.S. factories and will be the pattern for talks with Chrysler and Ford.
But a DBRS analyst, Kam Hon, says the deal is “not material.”
And Dennis DesRosiers, a leading independent industry analyst and critic of plump auto worker wages and benefits, says General Motors is continuing to avoid tough decisions, as it has for decades.
He estimates the total hourly cost of a GM Canada worker, including benefits, is $75 to $78.
DesRosiers says General Motors needs to cut this by $20, but “they got six or seven.”