The Big Three North American automakers have all signed on to three-year agreements with Canadian workers designed to help rescue the crumbling auto sector.
Under tentative deals that wrapped up yesterday — months ahead of schedule — workers for GM, Chrysler and Ford will have their pay frozen. They will get improvements in other areas and many will keep their jobs as plants that were slated to be shut down get at least a temporary reprieve and some facilities begin producing new vehicles and parts.
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The deal avoids the two-tier wage system accepted by the union representing U.S. autoworkers last year, under which new hires are paid less per hour than long-time employees, allowing the automakers to cut labour costs.