GM workers say yes to cost-cutting deal

Members of the Canadian Auto Workers have voted overwhelmingly in favour of a cost-cutting deal with General Motors.

Around 87 per cent voted in support of the deal, reached over the weekend, which includes concessions such as a wage freeze, the elimination of an annual bonus and reduction in paid time off.

"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," CAW national president Ken Lewenza said.

The results came Wednesday night following a two-day vote by 10,000 members. The deal is contingent on GM winning federal and provincial support.

"Our labour costs did not cause this global crisis, and labour 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."

The deal covers CAW members at GM's Ontario operations in Oshawa, St. Catharines, Woodstock and Windsor and includes concessions by the union that add up to an estimated $148 million.

The deal would extend the current collective agreement for an additional year to September 2012, with no reduction in average assembly-worker base pay of $34 an hour.

It would also eliminate a $1,700 annual "special bonus" and reduce paid time off to 40 hours a year from 80 hours. This time is in addition to vacation entitlements ranging up to five weeks annually for high-seniority workers, reduced last year from six weeks.

GM workers would also for the first time make payments toward their own health benefits — $30 a month per worker family.

Earlier Wednesday, Ontario Premier Dalton McGuinty said the Ontario government cannot guarantee autoworkers will still have their jobs even if they make concessions.

McGuinty was responding to a question at Queen's Park from NDP Leader Andrea Horwath, who called on the province to ensure long-term job security for Ontario autoworkers as part of the $4.2-billion bailout package the federal and Ontario governments have pledged for the auto sector.

"They and their families want assurances that their sacrifices are not for naught,… that the company doesn't have to come back to them for more," Horwath told the legislature.

"I wish I could provide the assurance that the leader of the NDP is seeking on behalf of those families," McGuinty replied.

"But what assurance I can provide is that we will work as hard as we can, Speaker, together with all of our partners, to maintain our share of production here in Ontario."

McGuinty also said he's confident negotiations aimed at securing a bailout for the auto industry won't be derailed by politics.

On Tuesday, federal Industry Minister Tony Clement called the tentative labour deal at GM just "one piece of the puzzle." He also said Ottawa wants to look at a range of issues, including how the company estimates its costs, before acting on a bailout.

"Ford and Toyota need General Motors to survive. They need Chrysler to survive because if they don't survive, their whole supply chain becomes dysfunctional. We're all in the same boat together and we all have to find a solution together," he said.