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Two major Canadian unions exploring merger by mid 2013

Two of Canada’s biggest private-sector unions are considering a merger.

The Canadian Auto Workers (CAW) and the Communications, Energy and Paperworkers (CEP) say they have been holding preliminary discussions for weeks.

Now the CAW and CEP will formally explore the possibility of creating a new, merged union by the middle of next year.

The unions say they’ve been galvanized by events like a lockout of employees at a locomotive manufacturing plant in southwestern Ontario.

Management of the Caterpillar-owned plant in London, Ont., want employees to agree to have their pay cut in half.