Canadian Auto Workers Propose Pay Cut to Avert Strike

By: Associated Press
By: Associated Press

The Canadian Auto Workers union says it has proposed wage cuts for new employees with Detroit's three big automakers in the hopes of averting a strike next week.

Union secretary-treasurer Peter Kennedy also warned Thursday that the union may strike at General Motors, Chrysler or Ford if negotiations regarding the proposed concessions fail.

He says the union will determine which automakers to target as the strike deadline of just before midnight Monday approaches.

The auto companies say Canada is now the most expensive place in the world to make cars and trucks, and they say they could move production south if the CAW doesn't cut costs.

Kennedy describes the talks as the most difficult he's seen in more than 20 years.

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