Days after coming to terms with Ford Motor Co., the Canadian Auto Workers Union has reached a settlement with General Motors heading off a potentially costly strike.
Despite concerns that GM would demand a unique settlement it largely settled for the same pattern contract negotiated with Ford earlier in the week. That leaves only Chrysler to settle on a new 4-year agreement – though the maker has consistently argued it needs to break pattern and come up with a contract that reflects its own unique needs.
“We met the entire Ford pattern,” boasted CAW President Ken Lewenza following settlement on the GM contract.
The agreement will result in GM getting some significant concessions on labor costs but also ensure that no senior workers are on layoff for the first time in two decades. The maker has also agreed to significant new investments at two key Canadian GM plants.