Canadian Auto Workers Ratified New Deal with Chrysler

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Canadian auto workers approved a new deal with Chrysler auto manufacturer, as confirmed by the auto union.  About 90% of the voting ratified the attractive deal that was reached a week ago. The Canadian Automotive Worker union said it’s not yet confirmed how many out of 8000 people working at brand’s facility in Ontario cast votes in the approval ballot held during the past weekend.

The 4-year contract deal includes job security provisions plus lump sum payments. It is based on the contract already approved by union members of General Motors and Ford. GM and Ford accepted their margins of 73% and 82% votes respectively.

Chrysler is one of the largest automakers inNorth Americato approve deals, ending the possibility of processions and that manufacture would have to shift to US in the next 4 years. The deal puts employees in comfort zone during the ongoing recovery, bridging the gap of future competency inCanada. Chrysler’s Vice President of worker relations, Al Lacobelli said that the company has been faithful toCanadaover the last 87years of service with stable employment levels and production capacity. Though they build a dozen of vehicles around the globe, one in every pair is made by their Canadian workforce, he added.

Big Three North American makers said thatCanadais world’s most expensive location to produce trucks as well as cars; but it didn’t affect Chrysler and Canadian Auto Workers who represent about 21,000 employees and about 16% of total vehicle production inNorth America. The benefit of working in the country in the past includes government health care and weak Canadian dollar, but vanished against US plants.

It was warned that production would move toSouth Americaif the CAW didn’t reduce costs. The Chrysler contract deal includes a CA$3,000 (equivalent to US$3,049) sanction bonus for employees and CA$2,000 (US$2,033) of lump sum payment for next four years. It also promises of pension benefits for working people and job assurance in all fields. It pays less for the newly recruited worker, expanding the time that takes them to top wage scale.

Union workers at US’s Detroit maker sanctioned the similar 2-tier salary contract few years ago, but workers couldn’t automatically get the top pay scale after ten years. Ken Lewenza, President of Canadian Auto Workers, said that the union arty will shift their focus toward improving auto policy and hence, they signed off on the agreement provided by three major automakers.

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