General Motors (NYSE:GM) reached a tentative, four-year agreement with the Canadian Auto Workers last night, securing 1,750 jobs and $692 million for Canadian plants. This is the second in a series of automaker negotiations with the CAW union that also involves Ford (NYSE:F) and Chrysler.
Ford reached a tentative deal with CAW on September 17 that landed them 600 new jobs, and nearly replaced cost-of-living raises with bonuses. “We believe that the tentative agreement offers unique-to-Canada solutions that will improve the competitiveness of the Canadian operations while providing employees with the opportunity to earn a good living,” said Ford Motor of Canada vice president Stacey Allerton in a statement.
CAW represents about 4,500 Ford employees, 8,000 GM employees, and 8,000 Chrysler employees. Union president Ken Lewenza said in a news conference, “Now we have Ford establishing the pattern, we have General Motors accepting the pattern, and tomorrow we go to work with Chrysler.”
Shares of General Motors (NYSE:GM) closed the week Friday up 38 cents at $24.80.
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