Mar 05, 2009 - 04:03 PM

By Melissa Mancini

OSHAWA -- The Canadian Auto Workers and General Motors are back at the bargaining table.

It hasn't been a year since previous contract talks, but the two parties sat down Thursday to kick start discussions about a new deal as part of the company's restructuring plan.

The announcement came the same day as a GM submission to the U.S. Securities and Exchange Commission which noted the company might have serious problems carrying out its U.S. restructuring plan.

"In 2008, global vehicle sales declined rapidly, and there is no assurance that the global automotive market, or GM's share of that market, will not suffer a significant further downturn," the report said.

Despite the report, CAW national president Ken Lewenza said the union was seeking to maintain wage compensation levels.

"We believe we can maintain our existing wage and benefits package," he said.

The union is looking for a commitment GM will maintain a presence in Canada. Mr. Lewenza wouldn't speculate about what the CAW would be willing to cut.

Mr. Lewenza said the United Auto Workers cut five paid vacation days in its contract. He would not comment on whether special paid absence days (or SPA days -- time off workers get besides sick leave and holidays) in Canada would be on the chopping block.

Local 222 president Chris Buckley echoed Mr. Lewenza's comments.

"We are going to put our best foot forward," Mr. Buckley said. "We owe it to our retired and active members to do what we can to keep GM here in Canada."

If GM does not acquire enough funding to execute its viability plan or if the plan doesn't work it "... could potentially be required to seek relief through a filing under the U.S. Bankruptcy Code, either through a prepackaged plan of reorganization or under an alternative plan, which could include liquidation," said the report.

Mr. Lewenza said the worst thing GM could do in negotiations is be "overzealous" and try to drive back the wages, benefits and working conditions the union has negotiated over the years.

But the union is expecting concessions, he said.

"No question about it, there will be sacrifices made by our members."

CAW Local 222 members weren't sure what they thought the union should cut as they went into work on Thursday.

"Not my job, as long as I keep my job," Shannon Magee said, laughing nervously.

The last contract, ratified in May, included a wage freeze, one less week of vacation and caps on some benefits.

"Personally I don't think there should be that many concessions," said Bill Taylor, who has been with GM for almost 25 years. "People don't understand that in the last few contracts there have been concessions already."

Mr. Taylor said if something had to go it should be "frilly stuff" like the legal services fund.

Bill Cowie said every effort should be made to keep current pensions in place.

"I think they have to leave the pensions alone," said Mr. Cowie, who has been at GM for 26 years.

Mr. Cowie didn't take a buy-out package when they were offered in the summer. He would consider taking one now if they are offered after this round of negotiations, especially if it meant younger workers would be able to keep their jobs, he said.

"Things are tough, everybody knows that."