General

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

Looking for more?

Get the Best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.
FILED UNDER: