CAW votes on tentative deal with GM

WINDSOR, Ontario, May 24 (UPI) -- Canadian union workers at General Motors plants began voting Sunday on a new labor contract that resulted after two weeks of negotiations.

The Canadian Broadcasting Corp. reported that the agreement reached Thursday would cut GM's annual labor costs by more than $8,000 per worker.

CBC reported that the third tentative contract agreement between General Motors and the Canadian Auto Workers within the past year comes as the American car maker seeks to restructure to avoid collapse.

The plan would mean a $15 to $16 reduction in the average per-hour wage of GM's Canadian workers on top of a previously negotiated $7 cut, union leader Ken Lewenza said.

Canadian officials have said major cost concessions are needed before the automaker is eligible for $6 billion in government loans.