GM Canada targeting labor costs

Toronto -- A showdown with unions is a certainty as General Motors of Canada sets out to slash $30 from each employees labor costs, officials on both sides indicated.

Wages, benefits, pensions and other costs for one hour of labor at the Canadian plants operated by GM, Ford and Chrysler total $77.75, a company background paper says in the run-up to talks with the Canadian Auto Workers union.

The same costs come to $47.50 an hour for U.S. plants operated by Honda Motor Co. Ltd., Nissan Motor Co. Ltd. and Toyota Motor Corp., the Globe and Mail said Friday.

The newspaper said CAW employees get 155 hours more paid time off annually
than workers at Japanese plants in the United States.

GM Canada spokesman Stew Low told the newspaper the figures clearly show the company is uncompetitive.

"The status quo just won't do," he said.

However, CAW president Buzz Hargrove said lowering wages won't be negotiated.

"I've told (GM chairman) Rick Wagoner, I've told the head people at Ford and Chrysler -- all of them -- that there's absolutely no way in hell," Hargrove told the newspaper.

Copyright 2008 by United Press International.