GM Canada plans to slash labor costs - report

Automotive News | April 18, 2008 - 9:40 am EST
 

TORONTO Reuters) - General Motors of Canada is set for a battle with its unions as it plans to regain its competitive advantage by cutting back on paid time off, allowing temporary workers, and getting rid of strict work rules, a Canadian national newspaper reported Friday.

A background paper released by the automaker details plans to eliminate a C$30-an-hour labor cost advantage versus U.S. plants operated by Japanese-based competitors, the Globe and Mail said.

The moves will most certainly be challenged by the Canadian Auto Workers union, which has repeatedly said that it will not allow a two-tiered wage system like the one the United Auto Workers in the United States agreed to last year.

Contract negotiations between the Detroit Three auto-makers and the CAW begin this summer.