CHRYSLER AVOIDS STRIKE WITH TENTATIVE LABOUR DEAL

The Canadian Auto Workers union has reached a tentative three- year agreement with

allowing it to set a strike deadline of Sept. 27 for its largest target among Detroit’s Big Three automakers,

CAW president Buzz Hargrove, pictured, said the automaker agreed to preserve all but about 1,000 jobs in Canada through 2008 at its three major facilities, including two vehicle assembly plants in Ontario. The automaker will pump $575- million into its Windsor minivan plant to build a new paint shop in preparation for future products to be built there, Mr. Hargrove said. In addition, DaimlerChrysler agreed to modest hikes in pay, benefits and pensions, and will more than double the incentive it will offer to older employees to retire. Mr. Hargrove applauded the automaker for following the pattern set by

in negotiations earlier this month during the first round of CAW labour talks. The CAW looks to be the winner in talks

with Daimler-

Chrysler as the

automaker’s top

demand that it

be allowed to

close its Etobicoke, Ont., casting plant in order to cut 2,500

jobs went unmet.

It also lost out on

other job reduction demands at

non- production location. “Our union does not resist change, so long as we can manage it in a way that does not threaten our members,” Mr. Hargrove said. Dow Jones