TORONTO - Local union and workplace leadership in the auto sector overwhelmingly endorsed a resolution authorizing the national union and Master Bargaining Committees to engage in extraordinary restructuring talks with North American automakers at a special meeting held earlier February 17, 2009. Over 500 CAW rank and file members (representing unionized workers at the Canadian operations of General Motors, Ford and Chrysler), attended the meeting at the Sheraton Centre Hotel in Toronto.

CAW Master Bargaining Committee representatives unanimously endorsed the same resolution at a meeting held on January 29. The union is gearing up for talks expected to begin within the coming weeks.

-RESOLUTION-

C.A.W. Auto Leadership February 17, 2009

In the wake of the unprecedented downturn on the global economy and its impact on auto sales (especially in the U.S. market) and the resulting financial crisis facing the three North American auto producers, CAW local union and workplace leadership in the auto sector (representing unionized workers at the Canadian operations of General Motors, Ford and Chrysler) met in Toronto today to discuss the current situation and next steps. Members overwhelmingly endorsed and authorized the CAW National President and Master Bargaining Committees to engage in contract discussions with the Canadian units of the three automakers in coming weeks, as part of the broader restructuring of those companies (including the provision of government financial assistance to them.)

Those negotiations would be aimed at ensuring that active labour costs at Canadian facilities of the three companies remain fully cost competitive with the companies counterpart facilities in the U.S., even as those operations are restructured in coming months.

Should these discussions result in a tentative agreement regarding proposed changes in the existing Master Contracts with the three companies, that agreement would be contingent upon:

- Ratification by a majority of CAW members at each company;

- Participation by the companies in a financial assistance agreement with the Ontario and Canadian governments;

- Acceptance by the companies of agreed-upon commitments regarding their future proportional manufacturing presence and activity in Canada; and

- Development of a comprehensive and viable National Auto Strategy, on the basis of recommendations from the Canadian Automotive Partnership Council, which addresses the industry's challenges including one-way trade imbalances between North America and the rest of the world.

In addition to considering possible changes to the existing collective agreements, the auto leadership also supported the national union and Master Bargaining Committees to engage in broader discussions with company and government officials regarding alternative mechanisms for funding legacy benefits such as retiree health and pension benefits.