CAW could make key concession in contract negotiations: report

The Globe and Mail‘s online edition is reporting that the Canadian Auto Workers union is prepared to make a key concession in contract negotiations with the three big U.S. automakers with plants in Ontario.

 Sources told the Globe that the CAW has laid out a proposal to cut wages for new employees at the Canadian operations of General Motors, Ford Motor and Chrysler.

The report says the union is also prepared to extend the time frame on a current “two-tier” system of paying new employees at a lower scale for several years.

It says the CAW is proposing to start newly hired workers at lower wages for the first 10 years of their employment at the three big North American automakers – four more years than under the current system.

CAW president Ken Lewenza has said the union opposes a permanent two-tier system – such as one accepted by the United Auto Workers union for employees at the automakers’ U.S. plants.

However, the three U.S. automakers have said they need to lower their costs in Canada in the next multi-year labour agreement with the union.