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| Union ratifies agreement with GM | |
| (30 minutes later) | |
| The Canadian Auto Workers Union has ratified an agreement with General Motors that will reduce labour costs at the troubled US carmaker. | The Canadian Auto Workers Union has ratified an agreement with General Motors that will reduce labour costs at the troubled US carmaker. |
| The cost-cutting agreement was called for by the Canadian government as a condition of its joint bail-out of GM. | The cost-cutting agreement was called for by the Canadian government as a condition of its joint bail-out of GM. |
| The deal to cut wages, pensions and benefits was approved by 86% of the members who voted. | The deal to cut wages, pensions and benefits was approved by 86% of the members who voted. |
| US unions will meet GM on Tuesday to find out how many more factory jobs the carmaker plans to cut. | US unions will meet GM on Tuesday to find out how many more factory jobs the carmaker plans to cut. |
| GM has asked for a 3bn Canadian dollar ($2.7bn; £1.7bn) loan from the Canadian government and the government of the province of Ontario. | GM has asked for a 3bn Canadian dollar ($2.7bn; £1.7bn) loan from the Canadian government and the government of the province of Ontario. |
| As a condition of the loan, the governments said that GM had to cut its costs so that they were competitive with Toyota Canada, which is non-unionised. | As a condition of the loan, the governments said that GM had to cut its costs so that they were competitive with Toyota Canada, which is non-unionised. |
| Industry 'crisis' | Industry 'crisis' |
| Union boss Ken Lewenza said his members had little choice but to accept the deal, which will keep GM's Canadian factories open. | Union boss Ken Lewenza said his members had little choice but to accept the deal, which will keep GM's Canadian factories open. |
| "They understand the crisis in the auto industry," he said. | "They understand the crisis in the auto industry," he said. |
| United Auto Workers' union officials in the US also reached a cost-cutting deal, which will change the payment terms on $20bn that GM owes to a UAW trust fund. | |
| The UAW hopes to have that agreement ratified by the 54,000 of its members who work at GM by Thursday. | |
| Avoiding bankruptcy | |
| GM faces a 1 June deadline to either restructure its debt or file for bankruptcy, and some newspapers are reporting that it will take the same option as its rival Chrysler and file for Chapter 11 bankruptcy protection. | GM faces a 1 June deadline to either restructure its debt or file for bankruptcy, and some newspapers are reporting that it will take the same option as its rival Chrysler and file for Chapter 11 bankruptcy protection. |
| If it is to avoid bankruptcy, the carmaker will need to reach agreement with its bondholders. | If it is to avoid bankruptcy, the carmaker will need to reach agreement with its bondholders. |
| GM has set a deadline of midnight EDT on Tuesday (0400 GMT on Wednesday) for agreement from the bondholders. | GM has set a deadline of midnight EDT on Tuesday (0400 GMT on Wednesday) for agreement from the bondholders. |
| It has proposed giving the bondholders a 10% stake in the company while giving 50% to the US Treasury. | It has proposed giving the bondholders a 10% stake in the company while giving 50% to the US Treasury. |
| The existing shareholders would end up with an extremely small stake in the company under the plans. | The existing shareholders would end up with an extremely small stake in the company under the plans. |