TORONTO (Reuters) -- The Canadian Auto Workers has offered the Detroit 3 automakers concessions on wages and pensions for new hires, a senior union official said today, as pressure builds to reach a contract deal ahead of a strike deadline early next week.
CAW National Secretary-Treasurer Peter Kennedy said the union has proposed a lower starting wage for new hires, and a longer "earn-in," the time it takes to reach the top of the pay scale. But new workers would still eventually reach the same pay as existing employees.
"The important thing is that over time they would grow into the prevailing rate, so that we wouldn't have a permanent two-tier system," Kennedy said.
On Monday, a union source close to the talks said it might be possible to extend the earn-in from the current six years to as long as 10 years. Kennedy said he did not want to talk specifics.