The auto workers union of Canada (TCA) announced on Friday night to have reached a wage agreement with the American company Chrysler, paving the way for financial assistance from Ottawa and an alliance with Italy's Fiat.
The agreement must be approved by early next week by the 8,000 employees of Chrysler Canada that are members of the TCA.
The union president, Ken Lewenza said in a televised press conference had agreed to a reduction in the hourly wage equivalent to 40 minutes of unpaid work per day. "We have done our job (...) We adjust not just the belt but also increase productivity," said Lewenza.
Chrysler, which is fighting against bankruptcy, has until April 30 the Canadian government to present its restructuring plan and be eligible to financial assistance.
To finalize the plan, Chrysler called on members of the TCA to accept a reduction of $ 19 Canadian ($ 16 U.S.) in the payment per hour of work, to comply with the level of Toyota Canada.
The owner of Italy's Fiat last week called for a reduction in pay per hour to conclude an alliance with Chrysler, which depends on the survival of the latter.
Chrysler has about 9400 employees in Canada, of which 8000 are represented by the TCA.

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