The Detroit Three auto makers have fired an early salvo at their unionized Canadian work force, warning that they are determined to hold the line on wages and other fixed costs in contract negotiations that begin next month.
Each of the companies sent a letter to the Canadian Auto Workers asking the union to forego a small wage increase, known as cost of living adjustment (COLA), that went into effect this month. The auto makers want the workers to agree instead to lump-sum payments, and are warning that such automatic wage increases would further damage the competitive positions of their Canadian plants.
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