Following Friday's announcement of a tentative cost-cutting deal between General Motors of Canada Limited (GM-Canada) and the Canadian Auto Workers (CAW) union, this evening, the CAW announced that members working at GM-Canada in Oshawa, Windsor, St. Catharines and Woodstock, Ontario have voted overwhelmingly, ratifying the deal by 86% in favor of the new collective agreement. The deal includes cost-saving provisions affecting cash compensation, health benefits, other non-wage benefits, work practices and productivity improvements as well as a comprehensive restructuring of the company's pension plan. Following Friday's announcement by the CAW, Canadian Minister of Industry Tony Clement stated that "[w]e acknowledge the CAW's latest agreement with the company as a further step in the restructuring of this industry toward a viable, sustainable future." The deal between GM-Canada and the CAW follows last Thursday's announcement of a similar agreement struck between General Motors (US) and the United Auto Workers union.
The United States and Canada have given GM a June 1 deadline to win concessions from all its stakeholders and to prove it can be a viable company. GM's current exchange offers for $27 billion of its unsecured public notes and the related consent solicitations expires tomorrow, to which GM "[d]oes not currently expect to reach agreements prior to the May 26, 2009 expiration date and withdrawal deadline of the exchange offers." By Wednesday, GM expects to announce "whether the expiration date will be extended or whether the exchange offers have expired and will not be consummated for failure to satisfy one or more of the conditions." According to GM, in the event that it does not receive, prior to June 1, 2009, sufficient tenders of old notes, to consummate the exchange offers, GM "currently expect[s] to seek relief under the U.S. Bankruptcy Code."