Canadian Auto Workers, GM reach tentative deal

DETROIT -- The Canadian Auto Workers union said Sunday it had reached a tentative agreement with General Motors Corp. on concessions need to qualify the company for Canadian government aid.

The two sides met through the night and reached agreement about 5 a.m. ET, union spokeswoman Shannon Devine said by telephone from Toronto.

The union had said Thursday it was willing to help GM's Canadian unit cut costs in its bid to qualify for Canadian government loans.

The union said it would release details of the deal Sunday afternoon. It said the union's 10,000 members would hold ratification votes Tuesday and Wednesday.

GM Canada is eligible for loans of up to 3 billion Canadian dollars — or $2.3 billion — under a government aid package. It submitted a restructuring plan last month.

Last week, CAW President Ken Lewenza said the Canadian union had reviewed the United Auto Worker's tentative concessions agreement with GM and would negotiate its terms based on that agreement.

Lewenza said a key goal would be that Canada maintain its market share.

GM Canada's viability plan hinges on what happens with its parent company, which sparked long-held fears last week after GM filed an annual report with the U.S. Securities and Exchange Commission revealing that auditors have raised substantial doubt about its ability to continue operations.

GM has already received $13.4 billion in U.S. government loans and is seeking a total of $30 billion from the government. Its restructuring plan also includes laying off 47,000 workers worldwide by the end of the year, which include about 4,000 that will be cut in Canada. GM will also close five more U.S. factories.

The company has also said reducing pension costs would be an important part of its discussions with the CAW but that it wanted to maintain existing pension rates and health-care benefits for its retirees.

GM had also said it wanted wage reductions to be part of the discussions.