caw-canada / general motors bargaining reportend of the calendar year. bargaining report september...

BARGAINING REPORT SEPTEMBER 2012 CAW - CANADA / GENERAL MOTORS

H I G H L I G H T S O F T H E T E N T A T I V E A G R E E M E N T B E T W E E N C A W- C A N A D A A N D G E N E R A L M O T O R SPRODUCTION AND SKILLED TRADES SEPTEMBER 2012

B A R G A I N I N G R E P O RTCAW-CANADA / GENERAL MOTORS

MESSAGE FROM THE PRESIDENT Ken Lewenza

When we opened 2012 negotiations,all the companies (GM, Ford, and

Chrysler) tabled a shopping list of demandsfor major concessions from the currentworkforce. Our members sacrificed in 2009,when the industry was on the edge. Thingshave turned around since then, and now thecompanies are profitable.

Yet they still had the nerve to demand moreconcessions, that if anything, were evenlarger than the 2009 sacrifices: the completeelimination of our defined benefit pensionplan, cuts in active wages, eliminating 30-and-out retirement, and enormousconcessions in local practices.

The companies were actually moreaggressive now than in 2009. Back then,they needed our help to survive – and theyknew it. Today, however, they’ve regainedtheir strength … and they turned theirpower against the union. They allthreatened major disinvestment and job lossif we didn’t bow to their demands.

In short, we faced a corporate “common

front.” How did we respond? That’s whereour pattern bargaining system, which we’vefollowed for decades in Canada, proved itsworth once again.

Once it was clear things were goingnowhere, we imposed a deadline for a workstoppage on all three companies – the firsttime we’ve ever done that in Canada.Somebody had to show they were willing toseriously negotiate, or else the wholeindustry would stop work.

Finally, one company – Ford Canada –signalled they were willing to reach a deal.We bargained with Ford an agreement thatprotects wages, pensions, and benefits, andrecognized our members for their sacrificeswith annual bonuses.

Then it was up to your elected CAW-GMbargaining representatives to take thatpattern to General Motors. Of course, theother companies always complain they“can’t afford” the pattern. But that’s juststandard rhetoric. Eventually they agreedthat our agreement can work at GM as wellas it can at Ford.

Pattern bargainingallows the CAW toconcentrate itscollective strength onone company at atime, and create alevel playing field oncompensation thatextends throughoutthe auto industry.

GM would never have agreed to thistentative contract without our patternbargaining tradition. It’s a strategy that’sworked for decades, and it worked again in2012.

I join all the members of your CAW-GMMaster and Local Bargaining Committees inunanimously recommending this tentativeagreement for your ratification.

In solidarity,

Ken LewenzaCAW National President

Fighting for the pattern

PUSHING THE PATTERN FORWARDH I G H L I G H T S

• Ratification bonus

• Cost of living lump sumpayments

• Employment commitments

• Protection of currentpension benefits

• New capital spending

• No two-tier system

BARGAINING REPORT SEPTEMBER 2012 CAW - CANADA / GENERAL MOTORS2

MESSAGE FROM THE SECRETARY-TREASURER Peter Kennedy

MESSAGE FROM THE CHAIR Chris Buckley

Collective bargaining has not been easy inthe auto industry in recent years, and

2012 was no exception. But this round oftalks really shouldn’t have been soconfrontational. CAW members at GM havemade tremendous sacrifices that contributedto the successful turnaround of the company.Our proposals were modest - our memberssimply wanted to share in the company’s newfound success.

Despite the rebound in profits, GM (like Fordand Chrysler) actually tried to make evenmore deep cuts to our contract. Theseconcession demands would have set ourmembers back decades (like eliminating our30-and-out pension, eliminating COLA, andgutting our overtime pay). They wereunacceptable to every member of thecommittee, just as they would have beenunacceptable to our members.

When the initial pattern agreement wasreached with Ford, GM claimed it could notmeet the pattern. It was only thanks to the

tenacity, determination and solidarity of thebargaining committee, backed up by strongmembership support that ensured wemaintained the pattern established at Ford.I’m pleased to report that we were able tonegotiate an agreement that rewards ourmembers’ contributions and creates fairerconditions in our workplaces, for all CAWmembers.

The new tentative agreement puts stronglimitations on the use of the SWE program inOshawa, as per the original intent, and willprovide a pathway for SWEs to become fullseniority members. The new agreement alsosecures work in our facilities and should allowus to achieve, for the first time in decades, fullemployment at General Motors’ operations inCanada. This means a more secure future forour existing members and workers yet tocome.

I’d like to extend my sincere thanks on behalfof your CAW-GM Master and LocalBargaining Committees for the support of the

membership andtheir familiesthroughout thischallenging set ofnegotiations. Themembership in everyfacility wasunwavering in theirsupport for thebargainingcommittees and this gave us a great deal ofstrength at the bargaining table. I’d also liketo thank the committees who worked aroundthe clock to reach this agreement. I join withthe entire GM-CAW Master BargainingCommittee in unanimously recommendingthis tentative agreement.

In solidarity,

Chris Buckley CAW/GM Master Bargaining Committee Chairand CAW Local 222 President

Standing up for our principles

A fair contract for all members

As we entered 2012 negotiations, we allrecognized the many challenges still

confronting Canada’s auto industry: theovervalued Canadian dollar, turbulent financialmarkets, huge imports from Asia and Europe.The union and its members cannot be blamedfor these problems. But we can’t ignore them,either.

So we took a balanced but principled approach.We did our best to secure jobs and investment(recognizing that investment decisions dependon many factors, not just labour). But we stuckto our guns on crucial matters of principle,rejecting concession demands and preservingour vision of fair, decent auto jobs for thefuture.

One example of this principled approach wascost-of-living protection. The companies alldemanded that COLA be removed permanently(including the current 33 cent float). Werejected that completely. Past generationsfought for the principle of inflation-protection,and we were not going to give it up.

But we also recognized that fixed cost increasesright now (as would result from normal COLAwage adjustments) would hurt our case forfuture investments, given the Canadian dollar.So we found a pragmatic compromise. Wekeep the current 33 cent float (remember, that33 cents an hour is worth $2750 over the next4 years!). We keep the COLA language in ourcontract. The quarterly adjustments in June2016 are reinstated.

In the meantime, to offset inflation wenegotiated annual lump sum bonuses ($2000per year in 2013, 2014, and 2015). Our realincomes are protected, but our fixed costs donot increase. It’s a pragmatic, principledsolution.

Another example was our approach to newhires. We were determined to reject apermanent two-tier system. What’s at stake isnothing less than the future of Canada’s middleclass. If high-productivity jobs in the autoindustry can’t pay decent wages and benefits,to support a family, then no-one is safe.

Instead of a two-tiersystem, the CAWproposed to adjust ourexisting new hiregrow-in schedule.Also, SWEs now havea pathway to becomefull seniority members.GM pushed us to thewall on these issues.But we resisted.

In sum, these were incredibly challengingnegotiations. But we held fast to our principleson issues like cost-of-living and two-tier, whileconfirming future investment and jobs. That’swhy I join with your entire CAW-GM MasterBargaining Committee in unanimouslyrecommending this tentative agreement foryour ratification.

In solidarity,

Peter KennedyCAW National Secretary-Treasurer

• Current retirees and surviving spouses will also stay at their current pension amounts.• Effective January 1, 2013, future retirees will have the option to take the commuted

value (lump sum) of the pension at retirement in lieu of a monthly pension.


WAGES RATIFICATIONBONUSWAGES

Base rates will remain unchanged for the life of the collective agreement. Current earnings:Assembler Production Technician Trades$34.19 $34.48 $40.58includes 33¢ COLA includes 33¢ COLA includes 33¢ COLAThe current 33¢ per hour cost-of-living allowance float remains unchangeduntil June 2016. Cost-of-living adjustments will be reactivated beginningwith the June 2016 COLA payment.

ANNUAL LUMP SUMSTo offset the impact of ongoing price increases on the cost-of-living, lump sumbonuses will be paid prior to the Christmas shutdown in:

• December 2013: $2,000• December 2014: $2,000• December 2015: $2,000

Total: $6,000

PENSIONS

Current Actives Basic Lifetime Special Allowance(per month per year of service) (per month to age 65)

Benefit Class A, B, C $68.00, $68.25, $68.50 $3,515Benefit Class D $81.00 $3,895

The terms of the pension plan remain unchanged for current members. The lifetime pensionand 30-and-out Special Allowance continue in their current amounts: RECOMMENDATION

Your Master BargainingCommittee and all LocalBargaining Committees

unanimously recommendthis tentative agreementand urge you to vote in

favour of it.

TERMThis is a four-year agreement

which expires onSeptember 19, 2016

at 11:59 p.m.

The CAW has negotiated a ratificationbonus. Active employees, as of theMonday following notice ofratification, and members on theinactive roll who performed work forthe company between January 2, 2012and the Monday following notice ofratification will receive a $3,000bonus. Only active SupplementalWorkforce Employees (SWEs), as ofthe Monday following notice ofratification, will also receive the$3,000 ratification bonus.The ratification bonus will be paid outto active employees no later than 2weeks following the notification ofratification. All eligible inactiveemployees will be paid out upon theirreturn to work or no later than theend of the calendar year.


PRODUCTION, INVESTMENT AND RESTRUCTURINGGM has confirmed product and investmentcommitments that should ensure employmentopportunities for virtually all CAW membersat GM during the life of this agreement. Thecompany made the following production andrestructuring commitments:

OSHAWA:• Extend production in the Oshawa

Consolidated Plant (producing theEquinox and Impala) to June 2014. Thissupports the continuation of 750positions, with the potential for a secondshift in the same time frame whichwould add another 750 positions.

• Add a third shift in the Oshawa FlexPlant in the first half of 2013 and operateit for the duration of the collectiveagreement, supporting approximately900 positions.

• Continue production of the ChevroletCamaro to the end of the currentgeneration model lifecycle.

• Continue production of the Buick Regalfor the duration of the collectiveagreement.

• Continue production of the Cadillac XTSfor the duration of the collectiveagreement, with total programinvestment in Oshawa of $117 million.

• Begin production of the next generationChevrolet Impala, launching in the firstquarter of 2013 and continuing for theduration of the collective agreement,with total program investment of $68million.

ST. CATHARINES:• Extend production of the High Feature V6

Engine in St. Catharines for the durationof the collective agreement.

• Populate third shift machining for theGF6 Transmission in October 2012. Athird shift for the GF6 Transmissionassembly will be added in the firstquarter of 2013.

• Launch production of a Gen 5 V8 Enginein the fourth quarter of 2013, withproduction continuing for the duration ofthe collective agreement, with totalprogram investment of $235 million.

• Continue production of the 6 Speed FrontWheel Drive Transmission through thelife of the collective agreement, withtotal program investment of $254million, including the third generation ofthis program, launching in the secondhalf of 2015.

CANADIAN MANUFACTURING:GM has also committed that it will meet theproduction targets and thresholds specified inits Canadian Operational ContinuationAgreement with the Governments of Canadaand Ontario for the duration of this collectiveagreement.

WORKFORCE RESTRUCTURING:• With the launch of the Gen 5 V8 Engine

in late 2013, approximately 100 newpositions will be created, allowing anequal number of St. Catharines-basedemployees working at remote locationsto transfer back to their home base on aseniority basis. Further transfers homeon a seniority basis will be facilitated byongoing retirements and attrition. Basedon actuarial forecasts all St. Catharinesmembers working away from home

should have an opportunity to transferhome by the end of the agreement.

• In St. Catharines, work previouslyidentified as potential outsourceopportunities within the 2007 COA thatis outsourced by the company prior toDecember 2016 will yield enhancedretirement incentives to a maximum of65 positions.

• Due to the expected closure of theOshawa Consolidated Plant in June2014, Document 12 language will applyat that time to all permanent job losses,and a restructuring canvass will beconducted according to existingcollective agreement language.

SWEs AND TRANSITION TO NEW HIRES:• The side letter allowing unlimited use of

SWEs in Oshawa is revoked effectivewith the end of the third shift in theConsolidated Plant.

• The future use of SWEs will be governedby the original intent and wording of the2006 COA agreement under which SWEsare used on a temporary flexible basis, fora maximum of 8 months, only duringmodel launches and for other purposes onmutual agreement with the local union.

• When new hiring is required in order toattain the Oshawa production plans,returning SWEs have preferential hirerights (as per existing local contractlanguage), and will be given a one-timechoice upon recall whether to return towork as a SWE (same wage and benefit)or as a regular new hire (new startingwage, benefit grow-in schedule, andseniority).

SKILLED TRADESAPPENDIX “R”: JOB SECURITY AND SKILLED TRADESWORK OWNERSHIPThe company aggressively came after the work ownershiplanguage in this round of negotiations. The union fought back,resisted the company’s demands, maintained this important jobsecurity language, and did not give in to any concessions onAppendix “R.”

FUTURE APPRENTICESHIP OPPORTUNITIESThe union has positioned itself for future apprenticeshipopportunities at locations with full employment, where there

will be a need to begin the process of replacing our skilledtrades workforce who are reaching retirement age.The company and the union will meet within 90 days ofratification, and annually thereafter, to review plant staffingneeds, employee demographics, attrition rates, product cycleplans and forecasts to consider potential need for futureapprenticeships.

SKILLED TRADES UNION EDUCATION PROGRAMFunding has been secured to continue with this valuableprogram to our skilled trades.


INCOME SECURITYIncome security benefits aremaintained for the duration of thisagreement at the current benefitlevels.

THE SPECIALCONTINGENCYFUNDThe Special Contingency Fund has beenrenewed for current programs at existinglevels.

CHILD CAREChild care subsidy is maintained.

INSURANCE BENEFITS

HEALTH CARE BENEFITSHEALTH CARE

• HEALTH CARE CONTRIBUTION There is no increase to themonthly health care contribution amount.

• DENTAL FEE SCHEDULE The Ontario Dental Association(ODA) Fee Schedule will be updated from 2008 to 2011effective January 1, 2013. A 2-year lag will continue over theterm of the agreement. Example: in 2016, the 2014 ODA willbe in effect.

• DENTAL HYGIENIST A Dental Hygenist will be recognized asa dental provider.

• PRESCRIPTION DRUGS The union resisted companydemands to increase the co-pay and the out-of-pocketmaximum. The co-pay remains at 10% to a maximum of $310.

• OVER-THE-COUNTER DRUGS The federal government

introduced a rule that medical plans covering OTC drugs, evenwith a prescription, will lose their tax-exempt status. In such acase, all health care benefits would become taxable to theemployee. To avoid this problem, effective January 1, 2013,OTC drugs, other than certain life-sustaining drugs, will nolonger be covered under the health care plan. A schedule oflife-sustaining drugs will continue to be covered, includinginsulins, nitrates, allergy serums, injectable vitamins, diabetictesting agents, needles and syringes, and vaccines.

• LONG TERM CARE Effective January 1, 2014 the maximumlong term care rate for new entrants will be reduced from$1,200 to $800 per month. Current residents of long term carefacilities, and those entering prior to January 1, 2014, willremain at current coverage levels (Long Term Care coverscurrent active members).

All benefits, including Survivor Income Benefits, are maintainedat current rates.

Assembler Trades($33.86 hourly rate) ($40.25 hourly rate)

S&A $830 $990EDB under 10 years $2,925 $3,500EDB 10 or more years $3,215 $3,850AD&D $38,500 $46,250Life Insurance $77,000 $92,500

WORKPLACETRAININGPROGRAMCompany funding for the WorkplaceTraining Program is renewed.

Curriculum will continue to bedeveloped to reflect current issues.


NEW HIRE PROGRAM

New hires receive full health benefits, overtime premiums, andstatutory holidays (same as existing employees), as specified inthe collective agreement. New hires receive child care subsidyafter 1 year of seniority.

10-Year New Hire Grow-In Program

WAGE AND VACATION SCHEDULESeniority Wage Paid Vacation

(yrs. completed) (% base rate) (hrs)

Start 60 4%1 60 802 60 883 65 964 70 1045 70 1126 75 1207 80 1208 85 1209 90 12010 100 180

To enhance our opportunities for new investments and hiring inCanadian facilities without creating a permanent second classof worker, the CAW and GM have agreed to a 10-Year New HireGrow-In Program. This program avoids the permanent two-tiersystem first demanded by the companies, expanding ourcurrent 6-year grow-in. New hires start with a lower packageof wages and benefits and grow in to full compensation after10 years.

The new Grow-In Program applies only to newemployees hired after ratification.

Wages start at 60% of the starting base rate and reach 100%after year 10 of seniority. Wages then catch up (as necessary) toany intervening base rate increases in subsequent years. COLA ispaid after the wage reaches the full prevailing base rate.

The pension for new hires will be a hybrid DB/DC plan, providingone-half of the defined benefit under the current plan, along witha parallel defined contribution plan. New hires will pay $1 perhour to the pension in years 1-4, $1.50 in years 5-7, and $2 in year8 and after (to a maximum of 2080 hours per year). Skilled tradespension benefits and contributions are 20% higher, consistentwith the traditional 20% wage and pension differential.

The 30-and-out pension with special allowance is still availableon or after age 55. No additional benefits are accrued after 30years of service or age 55 (whichever is later). 75% accrued DBpension benefit is allocated for the first 10 years of service(proportionate with the wage grow-in).

Income security: new hires receive short work week after 3 years(current practice), no SUB credits for years 1-5, half SUB credits foryears 6-10, and full SUB credits after year 10. New hires areeligible for incentives in restructuring events after 5 years.

Shift premiums: 50¢ for afternoons and $1 for midnights untilafter year 10 (when existing premiums will apply).

Retiree health benefits: these benefits are funded through acontribution of $1 per hour (phased in after year 10) to a grouptrust for new hires.

Other: new hires receive dependent scholarship benefits after 10years, a pro-rated life insurance benefit (proportional to wagegrow-in) in years 1-10, and no legal service benefits. Existinglanguage regarding LTD and S&A continues to apply.

Skilled trades: newly hired apprentices’ wages are specified inour apprenticeship progression. Newly hired journeypersonsbegin work at the full rate (as per existing practice).

Specific timing on the phase-in of final provisions after year 10will be confirmed in collective bargaining prior to the first newhires reaching 10 years seniority.


PAID HOLIDAY SCHEDULE: 66 DAYS DURING THE CONTRACTFriday, October 5, 2012 Friday before Thanksgiving

Monday, October 8, 2012 Thanksgiving

December 24, 25, 26, 27, 28, 2012 Christmas Holiday Period

Monday December 31, 2012 Christmas Holiday Period

Tuesday, January 1, 2013 Christmas Holiday Period

Friday, March 29, 2013 Good Friday

Monday, April 1, 2013 Easter Monday

Friday, May 17, 2013 Friday before Victoria Day

Monday, May 20, 2013 Victoria Day

Friday, June 28, 2013 Friday before Canada Day

Friday, August 30, 2013 Friday before Labour Day

Monday, September 2, 2013 Labour Day

Friday, October 11, 2013 Friday before Thanksgiving

Monday, October, 14, 2013 Thanksgiving

December 23, 24, 25, 26, 27, 2013 Christmas Holiday Period

December 30, 31, 2013 Christmas Holiday Period

Wednesday, January 1, 2014 Christmas Holiday Period

Friday, April 18, 2014 Good Friday




Friday, June 27, 2014 Canada Day

Friday, August 29, 2014 Friday before Labour Day


HEALTH AND SAFETY



December 24, 25, 26, 2014 Christmas Holiday Period

December 29, 30, 31, 2014 Christmas Holiday Period

January 1, 2, 2015 Christmas Holiday Period

Friday, April 3, 2015 Good Friday




Friday, June 26, 2015 Friday before Canada Day

Friday, September 4, 2015 Friday before Labour Day




December 24, 25, 2015 Christmas Holiday Period

December 28, 29, 30, 31, 2015 Christmas Holiday Period

Friday, January 1, 2016 Christmas Holiday Period

Friday, March 25, 2016 Good Friday

Monday, March 28, 2016 Easter Monday



Friday, July 1, 2016 Canada Day

Friday, September 2, 2016 Friday before Labour Day


The Master Health and Safety Committee has negotiated anumber of changes that will help create safer and healthier workenvironments at General Motors’ facilities and stay current withimportant related issues. The following improvements have beennegotiated:

• The establishment of a GM-wide nanotechnology committeewith necessary training and equipment.

• Increased training for the lift truck, die crews and crane.• Annual training location and course material must be

agreed to by the MJHSC. • Any new policies must be agreed to by the MJHSC.

• A new blood pressure and blood sugar testing program.• Improvements to Doc 74 language on ventilation, CCOHS

information, inspections and investigations.

ERGONOMICS A number of improvements to the ergonomics program havebeen negotiated:

• Annual training has increased from three days to five.• New policies and procedures must be agreed to by the

national ergonomics representative and the company. • Improved language in letter on ergonomically acceptable

back-up plans.

Note: For the National Parts Distribution Centre (Woodstock, Ontario), in lieu of the Friday preceding Thanksgiving (October 5, 2012;October 11, 2013; October 10, 2014; October 9, 2015) the Civic Holiday will be observed instead (August 5, 2013; August 4, 2014;August 3, 2015; August 1, 2016).


TERRY WHITEPlant Chairperson,

Local 199,St. Catharines

Your CAW-Canada Master Bargaining Committee at General Motors

KEN LEWENZAPresident

PETER KENNEDYSecretary-Treasurer

JERRY DIASAssistant to the

President

JIM STANFORDEconomist

KEITH OSBORNENational Representative

JO-ANN HANNAHDirector,

Pensions and Benefits

BILL MURNIGHANDirector, Research

PAT BLACKWOODDirector,

Skilled Trades

SARI SAIRANENDirector,

Health, Safetyand Environment

WAYNE GATESPresident, Local 199,

St. Catharines

GARY MARTINSkilled Trades Rep,


CHRIS BUCKLEYGM Master Bargaining

Committee Chair,President, Local 222,

Oshawa

GREG MOFFATTPlant Chairperson,Local 222, Oshawa

MARK CARMANDistrict 2

Committeeperson,Local 222, Oshawa

MICHAEL MUNCEDistrict 7


DWIGHT SEARLESkilled Trades Rep,Local 222, Oshawa

BILL DICKSONSkilled Trades Rep,Local 222, Oshawa

RON SVALJENKOSkilled TradesChairperson,

Local 222, Oshawa

JIM FINLAYDistrict 6


COLIN JAMESDistrict 4


RANDY ENGLISHChairperson,Local 636,Woodstock

BRIAN CHEMNITZSkilled Trades Rep,


TIM McKINNONZone 3

Shop Committeeperson,Local 199,

St. Catharines

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