DaimlerChrysler Workers OK Contract

TORONTO October 21, 2002; The AP reported that the 12,500 unionized workers at DaimlerChrysler Canada approved a three-year contract hammered out for them by the Canadian Auto Workers, the union announced Sunday.

The CAW said 91 percent of production workers, 80.5 percent of skilled trades workers and 92.8 percent of technical, office and professional staff voted in favor of the deal.

Under the terms of the contract worked out last week, DaimlerChrysler promised an investment for a new "world class" factory in Windsor, Ontario, the union said.

The deal also matches the wage-increase pattern set by earlier negotiations with General Motors Canada and Ford Canada of 3 percent in each of the first two years of the contract and 2 percent in the final year.

Ken Lewenza, head of the CAW's DaimlerChrysler bargaining team, called the ratification vote an "overwhelming victory ... for Canadian workers" because of the new factory.

DaimlerChrysler has said the plant will be built by late 2005.

New investment in Windsor was one of several sticking points in the negotiations, since the company's Pillette Road factory in Windsor has not been assigned a new product to manufacture after it stops making Dodge commercial vans in July.

Another key point was a series of workplace concessions on issues such as scheduling, down time and seniority the automaker wanted the union to accept. The company eventually withdrew those demands.

DaimlerChrysler spokeswoman Kerrey Kerr said the company was glad the ratification went smoothly and may discuss the contract more in a Monday conference call.

"We're pleased with the overwhelming, positive response to the agreement," she said.

DaimlerChrysler AG, http://www.daimlerchrysler.com