Canadian autoworkers OK wage freeze

Toronto -- Employees of Ford Canada voted by a 2-to-1 ratio to accept wage freezes and their union is pitching the idea to General Motors and Chrysler as well.

Canadian Auto Workers President Buzz Hargrove told the Toronto Star after the weekend vote by about 9,000 workers he doesn't expect much opposition from the other two carmakers.

"The second and third companies always don't like some pieces of the pattern but we don't anticipate any problems," he said.

The Ford deal freezes wages for three years; suspends a cost of living allowance until the end of 2009; cuts vacation pay and raises benefit expenses such as prescription drugs, the Star said. New workers will also have to wait longer to reach full pay status.

It will also take longer for new workers to get to full pay. They will start at 70 percent and reach 100 percent after three years and won't receive a cost of living allowance until the end of the contract.

All three North American automakers are facing tough Asian competition and lower demand, which Hargrove said had sunk in for union members.