Dec 04, 2008 - 08:33 AM

By Tony Van Alphen

General Motors of Canada Ltd. is aggressively seeking help from the Canadian Auto Workers to reduce costs in support of efforts for a huge government aid package, the union's top leader says.

Ken Lewenza, the CAW's national president, confirmed yesterday the union has received individual overtures from the three reeling Detroit-based automakers, but GM is pressing harder for savings on the eve of submissions to the federal and Ontario governments for emergency aid.  "GM has been the most aggressive," Lewenza said in an interview yesterday. "They've told us we must be part of the solution and must be creative in reducing costs."

GM, the country's biggest automaker, has a policy of not talking publicly about talks with its union.  Mr. Lewenza's comments came after the United Auto Workers in the U.S. revealed it will revise contracts with GM, Ford and Chrysler to delay billions of dollars in payments to a union run health-care trust.

Furthermore, UAW president Ron Gettelfinger said the union would modify a jobs bank in which members on layoff receive up to 95 per cent of their pay.   The CAW does not have a similar health-care trust or jobs bank in Canada at the three automakers.

Mr. Lewenza, who represents about 30,000 workers at the three companies, said none of them had broached specific areas where the union could reduce costs.

"There are ongoing discussions in terms of the challenges we all face but there have been no proposals either way," he said.

Mr. Lewenza skirted questions about whether the union would consider concessions. "We have always shown a willingness to help and there are different ways of doing that," he said. "It doesn't mean we have to reopen contracts every time and cut wages and benefits.  In the last few years, the union has agreed to changes in local agreements at GM in Oshawa, Chrysler in Brampton and Ford in Oakville that altered work rules and pay schemes, he noted

Mr. Lewenza said that in talks with GM, the union reminded the company about the current freeze in wages for three years; suspension of a cost of living for almost two years and other cuts to benefits.

The union also negotiated a package for workers affected by the pending shutdown of GM's truck plant in Oshawa during the summer after the company agreed in May not to close it.

GM has suggested the Canadian industry needs as much as $3.5 billion in short-term loans, loan guarantees or credit lines.

The federal and provincial governments have instructed the three companies to make submissions for aid by today.

Submissions should include restructuring plans, cash positions, short-term liquidity details, future product programs, data on impact on suppliers and how the car firms will handle financing needs here, the governments said in letters to automakers last week.

The government did not ask for submissions from Honda Canada and Toyota Canada, who also have extensive operations here but don't face an immediate cash crisis.

Meanwhile, Detroit-based GM, Ford and Chrysler and the UAW worked yesterday to win support from a skeptical U.S. Congress for a $34 billion (U.S.) aid plan south of the border.

"If we have a catastrophic failure of one of these car companies, in this tender environment for the economy, it's a huge blow," Chrysler vice-chair Jim Press told the Associated Press. "It could trigger a depression."

In submissions earlier this week, GM and Chrysler said they needed an immediate infusion of government cash until the end of the month and both noted they could drag the entire industry down if they fail. Ford wants a $9 billion "standby line of credit" in case a competitor fails.

Chrysler said it needed $7 billion by year's end to keep operating. GM asked for an immediate $4 billion as the first installment of a $12 billion loan, plus a $6 billion line of credit to use if conditions worsen.

All three plans envision government taking a stake in the companies.

-- Tony Van Alphen is a reporter with the Toronto Star