GM Seeks Aid from CAW

gm GM Seeks Aid from CAWGeneral Motors in Canada has now directly asked the CAW union to help it labour costs. CAW essentially told GM that it couldn’t help anymore as it already renegotiated a deal earlier this year that is saving GM $300 million. Still, union workers are getting paid about $75 per hour, compared to only $45 an hour for non-unionized workers. Clearly, the union is putting the big 3 in a disadvantageous position as all other competitors enjoy significantly discounted total labour costs. CAW even said with the USD currently trading at 80 cents CND, its labour is actually cheaper in Canada than in the US, Germany and Japan. The big 3 are seeking almost $35 billion in aid from the US government and $2 billion from the Canadian provincial and federal governments. Also, a recent survey found almost 65% oppose any bailout for the big 3. No one is budging, to say the least.


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