UPDATE 1-CAW reaches deals with Lear at two Ontario plants

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Tue Jul 21, 2009 2:35pm EDT

* Deals include new jobs at both plants

* 83 pct in favor in Ajax, 88 pct in Kitchener

* Lear's Whitby, Ontario plant is still without a deal

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TORONTO, July 21 (Reuters) - The Canadian Auto Workers union said on Tuesday its members voted in favor of new labor agreements with bankrupt auto parts supplier Lear Corp LEARQ.PK in Kitchener and Ajax, both in Ontario.

The union said the deals at the plants, which are run by Lear's seating unit and build parts for General Motors and Chrysler vehicles, would mean new jobs in both communities.

In Ajax, where the Lear plant closed down in May, 83 percent of workers voted for the deal, which pave the way for the plant to reopen in October 2010 and employ 250 people. The company will begin to be recall workers in February and complete the recalls by February 2011, the CAW said.

"Hundreds of people who lost their jobs will be able to return -- it's an amazing success story," said Jerry Dias, assistant to CAW President Ken Lewenza.

In Kitchener, 88 percent of union members voted for approval. The deal, which extends the workers' current agreement by a year to 2011, adds 147 new jobs to about 180 people working there now. Currently there are about 325 people laid off from the plant.

The CAW said Lear's Whitby, Ontario, plant is still without a deal.

A spokesman for Lear, based in Southfield, Michigan, said the company had no comment.

Lear filed for Chapter 11 bankruptcy protection in the United States earlier this month, marking the biggest failure in a parts supply industry that has been devastated by sharp cuts in vehicle production and bankruptcies at GM and Chrysler. (Reporting by John McCrank; Editing by Frank McGurty)

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