September 21, 2005

CAW and DaimlerChrysler Canada reach tentative deal

Toronto, Ontario – The Canadian Auto Workers union and DaimlerChrysler Canada reached a tentative three-year agreement Tuesday morning. It provides modest wage, pension and benefit increases, and improves job security for workers in three Ontario plants.

The agreement provides for the same level of wage increases, pensions and benefits as were contained in the pattern agreement negotiated last week between the CAW and Ford Canada. Like the Ford agreement, the DaimlerChrysler agreement contains several measures aimed at reducing the delivery cost of health care benefits.

The toughest negotiations dealt with job security and operational issues, and changes in work practices aimed at enhancing productivity. However, the provision of a $70,000 restructuring incentive to encourage early retirement should prevent any involuntary layoffs. The company’s Etobicoke, Ontario castings plant will continue to operate, although with fewer workers, and the Windsor and Brampton, Ontario plants will continue operation on three-shift schedules for the duration of the agreement.

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