Media Advisory - CAW Reaches Tentative Settlement with GM

    TORONTO, May 22 /CNW/ - The CAW has reached a tentative settlement with
General Motors Canada following weeks of intense negotiations for a new
collective agreement as part of the company's North American restructuring
    The agreement includes a series of cost-saving provisions affecting cash
compensation, health benefits, other non-wage benefits, and work practices and
productivity improvements. The company and the union have agreed that the
changes will reduce all-in labour costs to a level comparable to those paid at
Toyota Canada.
    The new agreement also includes a comprehensive restructuring of the
company's pension plan.
    Through this plan, the company commits to move to funding its pension on
a solvency basis, moving away from the special funding loophole established in
1992 in Ontario (referred to as Section 5.1). Thanks to a combination of
upfront contributions and sustained funding commitments over the next several
years, GM's pension funding status will quickly reach levels comparable to
Ford and Chrysler in Canada.
    "This deal will be an immense relief to the more than 25,000 retired GM
workers in Canada," said CAW President Ken Lewenza. "They will sleep much
easier tonight."
    CAW President Ken Lewenza said the union was able to resist cuts to many
core benefits, maintained wages and secured pensions for members at General
Motors, a testament to the strength and solidarity of CAW members throughout
these negotiations.
    "In the face of tremendous economic and political pressure we have ended
up with an agreement that protects the interests of our members, which is an
important victory," Lewenza said. "This agreement was a crucial step in the
overall process of restructuring this company, and allowing us all to move
    The agreement includes all of the cost-saving provisions originally
included in the contract negotiated with GM in early March and all of the
changes CAW negotiated with Chrysler in May.
    Additional changes negotiated in the second round of talks with GM
include substantial workplace practices and productivity improvements, an
extra freeze in all pension levels (going out to 2015), and the details of
GM-specific deals regarding pensions and the new independent Health Care
    The agreement also preserves the restructuring agreements which were
negotiated at the Windsor Transmission Plant and Oshawa Truck Plant.
    CAW members working at General Motors in Windsor, Oshawa, St. Catharines
and Woodstock will vote on the new contract in a series of meetings held on
Sunday and Monday. Results of the ratification votes will be released late
Monday night via Canada News Wire (CNW).

    The ratification schedule is as follows:

    (*) Please note: media are welcome to attend the Windsor, Oshawa and
        Woodstock ratification meetings.

    Sunday May 24, 2009

    St. Catharines - Local 199 (10 a.m.)    Brock University
                                            500 Glenridge Drive
                                            St. Catharines, Ontario

    Woodstock - Local 636 (10 a.m.)         CAW Local 636 Hall
                                            126 Beale Street
                                            Woodstock, Ontario

    Windsor - Local 1973 (2 p.m.)           Ciociaro Club
                                            3745 North Talbot Road
                                            Windsor, Ontario

    Monday May 25, 2009

    Oshawa - Local 222 (11 a.m. & 3:30 p.m.)   GM Place
                                               99 Athol Street
                                               Oshawa, Ontario

For further information:

For further information: CAW Communications: Shannon Devine (cell),
(416) 302-1699 or Angelo DiCaro, (cell) (416) 606-6311

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Canadian Auto Workers Union (CAW)

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