Canadian Auto Workers Authorize Strike

Canadian auto workers have overwhelmingly given their union the go-ahead to call a strike at the Big Three auto makers, as contract talks that could affect the entire North American car industry head down to the wire.

The Canadian Autoworkers Union, which represents about 46,000 workers with the Big Three auto makers, said 97% of union members at General Motors Corp. of Canada gave the union the mandate to call a strike, while the numbers were 95% at Ford Motor Co. of Canada and 97% at DaimlerChrysler.

That does not mean that car workers will strike, but it gives the union the right to call a strike if talks break down.

Contract negotiations kicked off July 16 at the Big Three auto makers, but they are just ramping up before existing contracts expire Sept. 17.

While the vote was widely considered a formality, CAW President Buzz Hargrove said the high percentages in favor of the proposal were important for the union.

“If we got low strike votes, that would be a message that the companies might read as a weakness on the part of the union,” he said.

Hargrove will announce a strike deadline and say which company will be targeted for discussions after Labor Day weekend. The deal signed with the target company will then set the tone for negotiations with the other auto makers.

This is the first time that the union has held contract talks at a different time from its United Auto Workers counterpart in the United States, where contracts do not expire for another year, and that means U.S. investors are watching the outcome of the talks closely.

Only the 1993 and 1999 contract negotiations have been settled without strike action.