GM workers accept new contracts

The approximately 10,000 members of the CAW union working at GM accepted the new restructuring agreement, with 87% in favor.

That is enough to ratify an agreement reached with management on 8 March.

The deal includes wage freezes, a reduction in holiday pay, and an end to inflation adjustments for pension plans.

"These changes are difficult for our members and retirees, but CAW members at GM agree that accepting these changes is the best choice under the circumstances," said CAW National President Ken Lewenza.

"Our labor costs did not cause this global crisis, and labor concessions - no matter how deep they go - cannot solve that crisis," Lewenza said.

"However, our members understand that the CAW must be part of the solution, and we have done that."

In a restructuring plan, GM has pledged to maintain 17 - 20% of North American production in Canada.

That was a key demand of Canadian authorities who provided US$6 billion in bailout funds.

Lewenza urged governments to quickly provide bridge loans that would activate the deal.

Source: AFP

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