REFILE-WRAPUP 1-CAW reaches deal with GM, close at Chrysler

(Refiles to fix spelling of WRAPUP in headline)

By John McCrank

TORONTO, May 15 (Reuters) - The Canadian Auto Workers union has reached a tentative contract agreement with General Motors (GM.N) of Canada and an agreement in principle on a new deal with Chrysler [CBS.UL] Canada, CAW President Buzz Hargrove said on Thursday.

"Overall, this is a good agreement that keeps alive as many jobs as we could," Hargrove said of the GM deal.

He said the three-year agreement mainly follows the same pattern as the deal ratified with Ford Motor Co (F.N) on May 4. See Factbox for details: [ID:nN14493937]. The deal freezes wages for three years but includes some cost-of-living increases in the second and third years for the roughly 13,000 GM workers represented by the CAW at several Ontario plants.

Hargrove said the agreement seeks to protect workers affected by GM plant shutdowns. GM announced on Monday it plans to shut its Windsor, Ontario, transmission plant.

"We put together what I call a groundbreaking closeout agreement for our members in Windsor, where 1,300 CAW members will lose their jobs in the second quarter of 2010," he said.

"We got retirement incentives, we got buyouts, we got a grow-in, pro-rated pensions, all of the things you can do to protect people who are caught through no fault of their own in what's a tragedy happening to our industry in Canada."

The deal also gives a reprieve to 900 workers set to be laid off at GM's Oshawa, Ontario, truck plant in September of this year.

"We were able to convince General Motors to keep the second shift alive, and the plant will work two shifts on and two shifts off until September of 2009, and we will be, of course, studying it as we go along in hopes that the market for half-ton trucks bounces back," Hargrove said.

The Oshawa truck plant will soon begin producing hybrid versions of the Silverado and the Sierra and the union is hoping that the more fuel efficient vehicles will revitalize sales.

Hargrove also said the union was given a commitment by GM that it will produce another vehicle at its Oshawa Flex operation, where it now assembles the Camero and the Camero convertible.

The company committed to produce a 6-speed transmission at its St. Catharines, Ontario, engine plant, the union said. It also agreed to produce its next-generation V8 engines at St. Catharines and Oshawa.

CHRYSLER DEAL SEEN NEAR

Hargrove said the union has also reached agreement on the broad terms of a contract deal with Chrysler LLC.

"We have an agreement in principle on all the outstanding issues," he said.