GM and Canadian Auto workers reach deal on costs, report says

General Motors and the Canadian Auto Workers union havereached a deal on labour costs that is critical to the automakergetting government financial aid.

 

General Motors and the Canadian Auto Workers union have
reached a deal on labour costs that is critical to the automaker
getting government financial aid.

 


Union leader Ken Lewenza says the deal allows GM to meet the cost
benchmarks set by the Canadian and American governments and stipulates
that GM's plants in Oshawa, St. Catharines and Woodstock will stay
open.

 

Lewenza also says the union has also preserved and secured the
pension benefits of its members, and it will see the pension plan
restructured.

 

The union and the automaker have been working towards an
agreement on wages and other costs that is critical for the company to
receive Canadian and U.S. government aid.

The deal comes a day after workers in the United States reached
a tentative deal with the U.S. government and General Motors Corp.

The moves are key to GM's efforts to restructure outside of
bankruptcy court. The company, which has received US$15.4 billion in
federal loans, faces a June 1 government-imposed deadline to
restructure or be forced into bankruptcy protection.

 
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