New contract will reduce labour costs
26 May 2009

General Motors workers in Canada have voted in favour of a new contract that will see the car maker’s labour costs reduced, it has been reported.

The Canadian Auto Workers union said it made the concessions to help GM qualify for long-term financial aid from the Canadian government and the province of Ontario.

Union members voted in favour of the measures by 86 per cent, the CAW said in a statement.

The agreement will bring labour costs down by roughly C$22 (£12) to C$23 (£13) an hour.

"This has been a gruelling restructuring process, and no one has felt that more than our members and retirees," CAW President Ken Lewenza said in a statement.

"Although we were forced to make a number of important sacrifices, the support we received from our members is proof that they recognize the incredible challenges the industry is facing," he said.

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