Magna signs new contract agreement at Ontario seating plant

Article by Christian Andrei, on November 9, 2010

A workers’ strike was prevented as workers at a Magna International Inc. plant in Ontario chose to have a new contract agreement with the auto parts maker.

The strike could have halted the production of Chrysler minivans in the Canadian province. On Monday, the Canadian Auto Workers union said that a two-year collective agreement was affirmed by 78.2 percent of union members on Sunday at the Integram Seating plant in Tecumseh, Canada.

Over 700 plant workers were in favor of a strike if no deal had been reached by Sunday at 11:59 p.m.

The plant manufactures seats for Chrysler minivans, which are made in Windsor, Ontario. A key condition in negotiations had focused on the workers’ right to strike.

Rick Laporte, President of CAW Local 444, said the new deal keeps wages at current levels, but it adds two lump sum bonuses for workers and advances in post-retirement benefits.

He said the age requirement for the benefits has been reduced from 60 to 55, as long as they have worked at the company for at least 30 years.

The deal also has a cost of living agreement, which will see the wages topped up in September 2010 to equal the rise of inflation. [via autonews - sub. required]

Topics: magna, factory, canada

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