GM and CAW reach agreement, May 22, 2009

Published on rabble.ca (http://rabble.ca)

GM and CAW reach agreement
May 22 2009 - 2:20pm

CBC.ca

Quote:

Lewenza said the union and the automaker reached the tentative deal around 11 p.m. ET Thursday.

Voting on the agreement by union members is slated for Sunday and Monday.

"We have preserved our wages. We have preserved and secured our pension benefits," said Lewenza. "We have protected most of our core benefits."

Pension issues were one of the major items, with Lewenza saying Friday that the union has agreed to a pension benefit freeze extending through 2015.

He pointed out that the pension plan for the workers is only 39 per cent funded on a windup basis

Union pension official Sym Gill said the pension shortfall is roughly $6.5 billion to $7 billion, adding that the pension is expected to be back on a fully funded basis in 10 years.

And showing who is really leading the bandwagon for concessions:

Quote:
"I’m hopeful when we look at the deal that all involved have made the difficult decisions necessary to create a viable company," Harper said.
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A little about the pension:

CAW news release [3]

The new agreement also includes a comprehensive restructuring of the
company's pension plan.

Through this plan, the company commits to move to funding its pension on
a solvency basis, moving away from the special funding loophole established in
1992 in Ontario (referred to as Section 5.1). Thanks to a combination of
upfront contributions and sustained funding commitments over the next several
years, GM's pension funding status will quickly reach levels comparable to
Ford and Chrysler in Canada.

"This deal will be an immense relief to the more than 25,000 retired GM
workers in Canada," said CAW President Ken Lewenza. "They will sleep much
easier tonight." [...]

Additional changes negotiated in the second round of talks with GM
include substantial workplace practices and productivity improvements, an
extra freeze in all pension levels (going out to 2015), and the details of
GM-specific deals regarding pensions and the new independent Health Care
Trust.



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