G.M. and CAW strike a deal

Car company will get bailout money, after bringing costs in line with Japanese automakers

General Motors reached a tentative deal with the Canadian Auto Workers last night that will help the company survive and keep plants open in Canada. The agreement will result in a restructuring of G.M.’s pension plan, but preserves pension benefits for workers, said CAW president Ken Lewenza at a news conference this morning. By bringing labour costs in line with those at foreign automakers like Toyota, the new cost-cutting deal also clears the way for G.M. to qualify for the critical government loans it needs to keep its doors open.

CTV News

Toronto Star