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Canada Auto Workers Approve New Contract with Chrysler

Sept. 27, 2012
The union represents 21,000 workers at Ford, GM and Chrysler.

Canadian autoworkers have agreed on a new labor contract with Chrysler, averting a sector-wide strike after signing similar deals with Ford and General Motors last week, their union said Wednesday.

"We are satisfied that we have a reasonable deal and... that Chrysler can grow in Canada," CAW president Ken Lewenza said.

The Canadian Auto Workers union had reached a tentative agreement with Ford on September 17, which employees have ratified.

Three days later, the union also reached an agreement with General Motors. It is being voted on by CAW members Wednesday and Thursday.

The CAW represents 21,000 workers at Ford, GM and Chrysler.

Under the terms of the agreements with all three automakers, new employees would receive about $20 an hour in wages, down from $24 now, and take ten years to reach a top pay level of $34 an hour compared to the current six years.

The union also agreed to a four-year wage freeze and a suspension of cost of living increases until 2016, in exchange for a signing bonus and lump sum payments in the subsequent three years. Chrysler had initially balked at the payments.

Copyright Agence France-Presse, 2012

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