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Union officials are just as excited, saying it is "out of the box" thinking and may save and grow manufacturing jobs here.
The three year window is the time needed to end current contracts for manufacturers. Once that work is done the workers will take layoff, and return at the lower wage with the lump sum payment.
The Kitchener plant manufactures metal work for seat cushions and tracks.
offer would not have saved Electro Motive, Carrie is quick to add. The CAW offered concessions that would have seen wages drop to about $25 an hour, and an end to the pension agreement, but were told a flat no, as the company wanted wages of $14.50 to $16.50, he added.
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"I would be so bold as to call it a game changer . it is exactly what is needed in this sector and it is very encouraging."
There are more than 80,000 workers in the automotive parts sector in Canada, but in 2007 there were more than 100,000 workers. More than 90% of the parts workers are in Ontario.
LONDON, Ont. A plant saving labour deal at a Kitchener, Ont., factory could become the new template for workers in southwestern Ontario's huge auto parts industry.
"These are tough times, it is easy for us to say no and then we lose jobs. We have Omega Watch Replica
Lear is also fighting its way out of bankruptcy and Electro Motive's mother company Caterpillar earned a profit of nearly $5 billion, he said.
"It is a blueprint that really could change our overall competitiveness in this province, it is that important," said Steve Rodgers, president of the Automotive Parts Manufacturers Association, the national organization representing parts makers.
Controversial labour deal new template for struggling manufacturers
Lear Corp., Kitchener
She is also concerned the company is tackling its bankruptcy through labour costs only, and not management decisions.
While it could not have saved the crippling closure of Electro Motive in London, Ont., it is now being looked at by others in the industry as a possible means to save automotive jobs.
to be innovative," said Tim Carrie, president Local 27 in London, who is also president of the independent parts supplier council of the CAW.
Charlotte Yates, labour professor at McMaster University in Hamilton, is worried about the impact the deal, saying it may open the door to future reductions.
New workers will come in at $14 an hour and ramp up to $20 in three years.
Over the next three years wages will be reduced to $19.50 an hour from an average of $28 an hour. Salary increases in the last two years of the four year deal will make it $20 an hour.
The key part of the four year deal will see salaries reduced to $19.50 an hour from an average of $28 an hour, but workers will get a whopping $40,000 lump Omega Watch With Nato Strap sum payment to transition to the lower wage. Wage increases in the last two years will see it go to about $20 an hour.
"I am not sure this is a sustainable solution for the manufacturing sector as a whole."
"This blames the workers and does not ask whether management is doing a good job."
Lear Corp. has cut a deal, approved by 84% of its workers, which radically alters the pay structure for its employees as the union fought to save jobs at the plant that was facing a shutdown.
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"I understand the logic, but in four years they may want more. They may want parity with their plants in Mexico and what is to stop them from asking for that," she said.
sum payment to transition to the lower wage.
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