The Canadian Auto Workers union has offered Chrysler, Ford and General Motors concessions on wages and pensions for new hires in a move to sign a contract deal prior to next week’s strike deadline.
The union has proposed a lower starting wage for new employees and a longer earn in. CAW National secretary-treasurer Peter Kennedy told Reuters, “The important thing is that over time they would grow into the prevailing rate, so that we wouldn’t have a permanent two-tier system.”
Also, new hires would need to contribute to the pension plan in order to receive benefits. Current employees make no contributions. Both current and new employees would be entitled to a DB plan.
New employees will be entitled to pension benefits after 30 years of service and reaching a certain age. Current employees will still be able to retire after 30 years of service, no matter their age.
None of the automakers are commenting on this deal right now.