CAW blasts `cookie-cutter' concessions, TheStar.com

Demands not `economically necessary or tolerable'
May 20, 2009
Tony Van Alphen
Business Reporter

Canadian and U.S. governments now want thousands of General Motors workers and retirees here to accept concessions similar to those of their American counterparts, their union revealed yesterday.

The Canadian Auto Workers said in a bleak update on concession negotiations with GM that the union faces an unprecedented "cookie-cutter" approach in demands from the reeling automaker and governments.

The U.S., federal and Ontario governments are considering billions of dollars in public loans to keep the ailing auto giant alive, but want major concessions by stakeholders, including unions in both countries, before a June 1 deadline for submission of a restructuring plan.

"Because the Canadian and U.S. governments are planning a joint effort to support GM's restructuring, we now face a dangerous attempt to enforce a "cookie-cutter" approach on our bargaining," the union said in a leaflet to more than 7,500 active workers.

"In other words, whatever is done in the U.S. must also be done in Canada. This philosophy is absolutely offensive to us as Canadians, and it is leading the government to demand things that are neither economically necessary or tolerable."

The CAW, which has been bargaining with GM since May 11 so it can be more competitive with rival Toyota, said the new demands clearly originate from the U.S. government. In the leaflet titled "We are approaching a Moment of Truth", the union said the latest demands ignore savings in health care here and different cost structures.

"It makes no sense to impose a "one-size-fits-all formula on us that ignores Canada's advantage," the union said, noting that the next few days of talks will be "worrisome and frightening."

The union did not disclose specific demands, but sources say some proposals would force active workers to pay for the first time into the company's pension plan, which is underfunded by up to $7 billion.

GM and the governments are also pressing for more concessions than workers accepted recently at Chrysler Canada, the union said last week.