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Deal adds, preserves 1,750 jobs, as well as future Impala output, union says

The Canadian Auto Workers reached a tentative labor agreement with General Motors that the union said will secure new investment, preserve jobs and delay the shutdown of a major assembly line.

 

The settlement covering wages and benefits for about 8,200 workers followed a day of back-and-forth negotiations between the union and the U.S. automaker.

 

"In today's economy, in today's market share, it meets our goals," CAW President Ken Lewenza said following a marathon 30-hour bargaining session.

 

Rank-and-file approval of the contract would ensure continued production of such Canadian-built vehicles as the Chevrolet Equinox, Camaro and Impala.

 

In addition to the Chevrolet models, GM builds the GMC Terrain, Buick Regal and Cadillac XTS in Canada.

 

The union said the proposed four-year deal will add or maintain 1,750 jobs -- a key objective of CAW officials during labor talks this year with Detroit automakers.

 

GM has pledged to invest C$675 million in Canada over the life of the agreement, CAW officials said.

 

Lewenza said GM has agreed to add a third shift on the flex line at its Oshawa, Ontario, assembly plant early next year, which will create or maintain 900 jobs.

GM will also delay the closing of a consolidated production line at a plant in Oshawa until June 2014, Lewenza said.

 

In June, GM announced plans to shutter the line in 2013, affecting about 2,000 jobs.

 

The line currently builds the Impala, which will be redesigned next year and assembled at GM's Detroit-Hamtramck plant.

 

CAW officials said GM has agreed to build the all-new Impala in Oshawa, as well.

 

Under the pact, Lewenza said GM will build the next-generation Impala on one shift, employing about 750 workers. Production could be increased to two shifts in 2014, he added.

 

The union said GM also will add or maintain another 100 jobs as part of new investments planned at its St. Catharines, Ontario, engine and powertrain manufacturing operations.

Like the UAW, which negotiated new labor pacts with Detroit's 3 automakers in 2011, the CAW has pressed for new jobs, employment security and future product commitments during the talks with the companies.

 

But Lewenza told journalists his biggest disappointment during the GM negotiations was that the union wasn't able to secure output of a new vehicle.

 

"When you're in market share decline, you can't win a product," he said.

"Needless to say the master bargaining committee entirely tried to get new product... but GM made it clear they don't need the capacity or have the products [at this time]," Lewenza said. "But, at any time during this collective agreement, if GM shows increase in market share, we have the investment there and tools to move fast."

 

"Don't waste that investment. Don't waste that floor space," Lewenza said, referring to GM.

 

Canadian bailout

 

The union represents about 21,000 workers at Ford, GM and Chrysler. Canada accounts for about 16% of all the light-vehicles the three automakers assemble in North America.

 

But the strong Canadian dollar and concessions the automakers secured a year ago from the UAW have undermined the competitiveness of Canada as a manufacturing base.

 

Lewenza said the GM pact should help maintain the automaker's fixed costs at current levels and put the union in a competitive position to win future investments.

 

"That was our goal," Lewenza said.

 

GM, which received financial support from the Canadian and Ontario governments as part of its 2009 bailout, suggested the deal addressed its competitive needs against an unfavorable macro-economic climate.

 

"This set of talks with our labor partner have been candid and constructive, reflecting the challenges facing Canadian manufacturers," David Wenner, general director of labor relations for GM of Canada, said in a statement.

 

The company declined to comment further on specifics in the plan, pending a ratification vote.

 

The union reached a tentative labor pact with Ford Motor Co. on Monday that it is using as a pattern for deals with GM and Chrysler.

 

The Ford agreement mostly eliminates cost-of-living raises for workers and retirees. Ford agreed to create about 600 jobs, including a partial third shift at a vehicle-assembly plant in Oakville, Ontario, the union said.

 

Ford workers will receive C$2,000 ($2,046) lump-sum payments annually in later years, in lieu of raises, and a C$3,000 ratification bonus upon approval of the deal.

 

The union said cost-of-living adjustments would be suspended until June 2016.

 

Voting on the Ford deal is scheduled for this weekend and the results are expected late Sunday, the union says.

 

Chrysler negotiations continue

 

Negotiations between the CAW and Chrysler Group LLC are continuing.

 

Chrysler is the smallest of Detroit's automakers but has one of the largest active payrolls and manufacturing footprints in Canada, where it builds minivans and large sedans.

 

Lewenza on Thursday warned the union would provide strike notice against Chrysler if a deal can't be reached.

 

"To the Chrysler workers we represent in Canada: Be patient. I hope the patterns established will give Chrysler the confidence," Lewenza said. "We're not fearful of providing a strike notice. If Chrysler is going to resist that pattern we may have to use that tool."

 

 

 

Purchasing a vehicle usually comes with the standard jargon. You sit stressed out in the finance manager’s office while he or she lectures you about how much you “need” a warranty for the vehicle you just purchased. Initially, most car buyers feel that a warranty is unnecessary; however, that isn’t the case. A warranty is similar to car insurance. Insurance safeguards your vehicle if you’re in an accident, and an extended vehicle protection warranty cares for your vehicle whenever it breaks down, which they all do at some point. This is why you eventually need an extended warranty.  

Deciding whether to buy a warranty for your vehicle is a major decision that most people don’t think about until the sales manager gives them the option to accept or decline the extended warranty. Here are some things to consider when making that decision.

•Do you have the finances to make an expensive repair if necessary? It may seem far-fetched now; however, cars don’t break down at opportune moments.

•What does the warranty cover? Purchasing an “exclusion policy” is the best choice, because it simplifies everything. This type of policy tells you what the warranty doesn’t cover. If it’s not on the list, it’s covered.

•Does the warranty cover substantial damages? For example, your power steering pump breaks down. This creates problems for the power steering rack. Does the extended warranty include both parts?

•Does the warranty cover electronics or technology like GPS and mobile phones? This is a very important point to consider since most new vehicles have the latest technology already installed. 

•Is there a deductible? Most warranties come with a deductible. This may not be a deal breaker, but it’s something you should know. 

•Where can you get your car serviced? Some warranties allow you to service your car only at specified repair shops. 

•Will the repair payment come directly out of your pocket? A reputable company pays the repair shop directly for your repair. This saves you worry about paying first and hopefully being reimbursed later.

3 Reasons to Purchase an Extended Warranty on your Vehicle

Now that you have an idea of the things to consider when deciding about whether to purchase an extended warranty, here are three good reasons why you should purchase an extended warranty for your vehicle.

1. Economics

You might think that an extended warranty plan is too expensive. However, it’s actually amazingly affordable! First of all, many policies come with a “no fee” payment plan. This means that no tax, interest, or other fees are added to your payment. The average repair bill can be pricey. Extended warranty policies pay for themselves before the first year is up. 

2. Complete Protection

With extended warranty protection for your vehicle, you’re completely covered. In addition to covering the cost of repairs due to a mechanical breakdown, you also receive other benefits. For example, extended warranties include around-the-clock roadside maintenance, battery charges, fuel delivery, towing, flat tire changes, and much more. Some include free rental cars and lodging accommodations as well! 

3. Peace of Mind

An extended warranty is similar to health insurance. Your health insurance protects you in case of illness; your extended vehicle warranty protects your vehicle if it becomes “unwell.” Many car owners reason that if any repair is needed, they will deal with it when the time comes. Unfortunately, it rarely works out that way. Once the car leaves the repair shop, it could break down again, at any moment. With an extended warranty, when one thing goes wrong, you’re still covered if something else breaks down too.     

Overall, purchasing an extended warranty for your vehicle is the more prudent thing to do. With extended vehicle protection, you decrease the anxiety that comes with wondering what to do if your vehicle breaks down!

About the author:

Doug Climenhaga is president of SVI International, Inc., a leading supplier of parts for industrial lift equipment, including brake lathe parts. With more than 20 years experience in the hydraulic and automotive lift industries, he holds two patents and has designed scores of problem-solving products. 

Quality car care does not have to include oily footprints, scraped knuckles, or dirty fingernails. When you follow these 10 car care tips, you keep your vehicle running smoothly for a long time and save much of the money you now pay to mechanics while still keeping your hands clean. 

The First Five Tips

1.Take road trips regularly. People enjoy short work commutes, but cars do not. It is important to drive a car for a minimum 15 minutes at least every one or two weeks. Start counting the 15 minutes after the coolant has reached its operating temperature. This allows the engine oil to get hot enough to boil off the moisture that builds in the engine.

2.Once you've stopped, don't move. When your car is home to stay for an extended period of time, park it in its permanent spot. Otherwise, you run into the same problem mentioned in the previous tip: the unhealthy blending of oil and condensed moisture.

3.Give your car an appropriate amount of time to "wake up." A car requires two or three seconds to wake up before you start driving it. Practicing a responsible driving routine when you start your car, such as buckling your seat belt and checking your mirrors, gives the car ample time to warm up. However, a long warm up period is not necessary and can be even more harmful to the environment than a warm up that is too short. Give the car the time it needs and then start driving.

4.Practice stretching exercises. During the first few minutes of a drive, keep the road speed and engine speed or revolutions per minute (rpm) low and avoid hard acceleration. This process allows the car's lubricants to spread out appropriately.

5.Keep the revs down. This concept applies to cars with manual transmissions and drivers who fiddle with automatics to pretend that they have manual transmissions. As long as a car is able to accelerate within a gear, there is no reason to downshift. High-rpm running in either 2nd or 4th gear puts an incredible amount of stress on the engine.

Five More Great Pieces of Advice

1.Pay attention to car smells. Just about every unusual car smell indicates an issue. For example, a sweet odor most often comes from antifreeze, which can point to a weak radiator hose, failing water pump, or heater core issue.

2.Pay attention to car noises. Similar to smells, noises and vibrations almost always point to car problems. Many people struggle to describe the noises to their mechanics so instead of mimicking the sound, try using descriptive words such as growling, grinding, squealing, thumping, whining, and screeching.

3.Inspect your parking space. The only fluid that should be in a car's parking space is clear water that occasionally drips from the air-conditioner. All other fluids point to car issues and are also environmental hazards.

4.Change the fluids regularly. Many car owners pay attention to their engine oil but do not think about additional fluids that need to be replaced regularly. Cars require regular changes for transmission fluid, coolant, differential oil (rear-drive cars only), transfer case oil (for 4-wheel drive cars only), brake fluid, and power-steering fluid. Check your owner’s manual for the schedule recommended for your vehicle. Did you recently buy a used car? Have a mechanic inspect the fluids and make any necessary changes.

5.Replace the rubber components regularly. Every rubber piece in a car needs to be replaced at some point. The most important rubber components are the tires and windshield wipers. Other rubber parts that you may need to replace include radiator hoses, brake line hoses, fan and accessory belts, steering rack boots, and heater core hoses. 

About the author:

Doug Climenhaga is president of SVI International, Inc., a leading supplier of parts for industrial lift equipment, and other repair parts including tire machine parts. With more than 20 years experience in the hydraulic and automotive lift industries, he holds two patents and has designed scores of problem-solving products.

The name confuses a lot of people. There's a good reason. "No fault" implies no party is at fault following an accident. The fact is, someone is always at fault, and the person or persons responsible are likely to see their car insurance rates increase.

So, what does no-fault mean? More to the point, how does it affect you in the event you are involved in an accident? We'll clarify these and other important points below. You'll learn what no-fault insurance is, how fault is determined after a collision, and what happens if you are found to be responsible for the incident. If you find that your insurer treats you unfairly, it may be time to request quotes from other companies.

Basics of no-fault auto insurance

The basic premise under which no-fault insurance works is that you deal with your own insurer following an accident. It does not matter whether you were responsible for the incident, or another driver caused it. All parties involved file claims with their respective insurance companies to receive compensation for injuries and damages to their personal property. There is no need for you to contact the other driver, or the individual's insurer for compensation.

One of the reasons Ontario and a number of other provinces have adopted a no-fault insurance system is because of the high cost of litigation. In the past, when two drivers got into an accident, their insurers would often disagree regarding who was to blame. The matter would oftentimes be settled in court with the injured parties left to wonder about the outcome. This process, along with its high cost, can often be avoided with a no-fault system. 

Proponents of this system claim policyholders enjoy lower overall rates. Given that rates have continued to rise over the last several years, this assertion is questionable.

The main benefit for consumers is that claims for compensation for injuries and property damage are paid out quickly. There is no need to wait for the insurance companies to determine who was at fault.

How is fault assigned for an accident?

It is important to realize that a police officer's opinion regarding which party caused an accident is all but irrelevant to insurers. An officer's perspective of the incident is limited to whether charges should be brought against any of the involved parties. It has little to do with how blame is ultimately assigned by insurance companies.

Insurers operating under a no-fault system rely on fault determination rules established by regulators for their provinces. For example, Ontario's fault determination rules were created by Regulation 668 under the Insurance Act. These rules are very clear, and include detailed examples that address the most common types of collisions. They simplify the insurer's task of determining who is at fault. They also help to ensure determinations of fault are applied fairly and consistently.

An example of how insurers determine fault

Suppose you are traveling along the highway, and a second car is traveling in the same direction a safe distance in front of you. But the driver of the other car slows suddenly and unexpectedly without notice to make a right turn. Because you had not expected him to do so, your vehicle accidentally rear-ends his car. Who is to blame?

Further suppose the police officer who arrives on the scene learns the details of the incident, and concludes both you and the other driver are at fault. According to the officer, the other driver should have turned on his right indicator light and slowed more gradually. On the other hand, you should have been more careful.

Your insurance company will not take the police officer's opinion into account. It will instead refer to the fault determination rules established for your province. If you live in Ontario, the rules for this particular scenario indicate you are 100% at fault. 

What happens if you are found at fault?

It is worth noting there are circumstances for which fault is shared between parties. Keep in mind, as long as you are partially to blame for an accident, you will be affected by it. 

The incident will be added to your insurance record. In most cases, you can also expect your rates to rise when your policy comes up for renewal. An exception might be made if your insurer offers accident forgiveness, a feature that protects your premium if you cause an accident. The feature is usually reserved for drivers with clean records and few claims.

Once an accident has been added to your driving record, it remains there for six years. It will continue to affect your rates until it drops off.

Insurance companies have different approaches to changing their policyholders' rates after an accident, regardless of whether they operate in a no-fault environment. Call your insurer, and ask the representative to explain your company's approach. This might be a good time to shop around and compare quotes from other insurers.