DETROIT - General Motors Corp. has not yet accepted the terms Ottawa and Ontario are attaching to loans earmarked for the Canadian operation, the Globe and Mail reports.
GM president Fritz Henderson says he has only seen a summary of the terms and wants to ensure it fits the automaker's overall viability plan.
He says until the deal is signed, it's too early to talk about what GM will seek from its workers in discussions with the Canadian Auto Workers union.
The federal and Ontario governments have offered GM $3 billion and Chrysler $1 billion in assistance.
The terms are expected to be similar to a U.S. bailout package, including requirements that the companies trim labour costs and change work rules to make them more competitive with Japanese-owned plants in North America.
If Ottawa and Ontario make a similar demand, says the Globe and Mail, Canadian hourly labour costs would have to fall by about $18 an hour.
But what's not clear, both industry executives and union officials said, is whether labour costs are supposed to be competitive with average costs at Japanese-owned plants or a particular plant.
"What's the benchmark?" Ken Lewenza, president of the CAW asked Monday. "That's the problem that we have."
Chrysler president Tom LaSorda said Sunday that his company will begin discussions with the CAW next week".
Lewenza said he's not sure what Chrysler will seek, but it has been clear that the union will be asked to contribute.
GM has not approached the CAW directly about negotiations, he said, but "GM consistently calls and says 'Ken, you have to be on alert. We have a mandate to get this done by the end of March."'
The key issue for the two Detroit auto makers that have received money from Washington -- GM and Chrysler LLC -- is demonstrating to the U.S. government that they are viable, including showing an ability to pay back the money Washington has lent them. GM and Chrysler have each received US$4-billion with another US$9.4-billion to come.
