US unemployment rates up in 26 states

General Motors of Canada and the Canadian Auto Workers Union said Friday they have reached a tentative agreement on a new contract. The New York Times said the deal's core stipulations were in line with a tentative agreement the CAW reached Monday with Ford Motor Co. of Canada. CAW President Ken Lewenza said, "We wanted to share in the modest success of General Motors." David Wenner, the automaker's general director of labor relations, said talks with the union were "candid and constructive, reflecting the challenges facing Canadian manufacturers." Chrysler has yet to negotiate a new contract. The is pushing the CAW to agree to a two-tier wage in which new hires are paid a lower wage, which would become establishes as the prevailing wage as older workers retire. Ford and GM were able to negotiate a longer period of low pay for new hires, but not to make that low pay permanent. If the contracts are ratified, new workers will be paid 60 percent of the full wage and take 10 years to reach the top wage of $34 per hour. Under the current contract, new workers are paid 70 percent of the top wage and are paid less than full wage for six years. Chrysler would benefit more quickly than Ford or GM if a two-tiered system was adopted, because it only has 70 workers on furlough, which means it is closer to the point of having to hire new workers. Ford has 900 workers in Canada waiting to be called back to their jobs and GM has more than that, the Times said. Chrysler Canada said in a statement it looked "forward to continuing our discussions with the CAW." Lewenza said the union, which pulled back from calling a strike on Monday, said negotiators would keep talking. "We're not fearing of providing a strike notice, but, as we've said many times, that's the last tool in the toolbox," he said.