Short-Term Gain, Long-Term Pain for CAW


The short-term results may be anti­cli­mac­tic, but the long-term effects to the new labor agree­ments between the Cana­di­an Auto Work­ers Union and Detroit’s automak­ers could be dev­as­tat­ing for work­ers in Cana­da. The CAW found itself in a poor bar­gain­ing posi­tion. Sales in North Amer­i­ca are slump­ing, leav­ing excess capac­i­ty at Cana­di­an plants. The weak­en­ing U.S. dol­lar and low­er labor costs due to agree­ments with the UAW make it cheap­er for Detroit to pro­duce vehi­cles in the U.S.