GM Canada may trim labor costs, allow temporary workers
Published:22-April-2008
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General Motors of Canada is planning to reduce the paid time off as it endeavors to regain its position in the race for the top automaker rank, reports Reuters, citing The Globe and Mail, a Canadian newspaper, as its original source.
The carmaker will reportedly employ temporary workers and also eliminate the strict work rules. According to a document released by the company, a C$30-an-hour labor cost advantage versus US plants operated by Japanese competitors, is likely to be dropped.
It is claimed that the planned changes are likely to be challenged by the Canadian Auto Workers union, which has announced that it will not agree to a two-tiered wage system to be initiated in Canada.
