Canadian Auto Workers union members voted to accept a cost-cutting deal with struggling automaker Chrysler Canada.

The labour package wrought with concessions designed to save Chrysler $240 million a year, was approved by 87 per cent of those that voted.

CAW President Ken Lewenza said the high approval vote shows that all involved in the auto industry recognize the importance of maintaining good jobs.

"Our members understand better than anyone the current turmoil of the domestic auto industry," Lewenza said in a news release.

"The high acceptance of this agreement is a recognition that although workers did not cause this crisis, we all have an interest in maintaining good jobs and ensuring the auto industry remains central to the overall Canadian economy."

Officials say the deal doesn't cut workers' base wages or their pensions. Instead, the company will save money by increasing its productivity.

Members were presented with the deal on Friday soon after a deal was reached at the bargaining table.

Both sides were under intense pressure to reach a deal fast so that Chrysler can submit a restructuring plan to the government that would satisfy conditions for a bailout loan before the end of April.

The union's concessions include:

  • Reductions to paid relief time
  • Cuts to supplementary unemployment benefits and prescription drug fees
  • The removal of semi-private hospital coverage, employee car purchase benefits and tuition rebate programs.

The union agreed to increase the salaries of new workers more slowly. The company will also offer more jobs to part-time and contract workers.

The union is also giving Chrysler 10 years, instead of five, to top up the pension fund.

For its part, Chrysler said it "deeply appreciated" the concessions.

"The CAW leadership worked around the clock for its membership to hammer out the details during an extremely complex negotiation," Chrysler's chief bargainer, Al Iacobelli, said in a statement.

But Buzz Hargrove, the former national president of CAW, said earlier on Sunday he's mad union members had to give up as much as they did.

"I'm angry as hell. I'm not angry at my union, they've done an incredible job. I'm angry at a government. A government that has used a heavy hand -- Mr. Clement and Mr. Bryant, the provincial government as well -- to force workers to give up things that they've worked hard and gained over the years," he told CTV's Question Period.

Government 'heavy-handed'

Hargrove said the Canadian government should be doing more to help the auto sector instead of counting on the workers to give up benefits they have fought hard for.

"It's unprecedented where a government would step in and say: 'You're going to cut your wages by $19 an hour.' You know, there's over 20 countries around the world -- France, Italy, Germany, Japan, Australia, New Zealand - all of these countries around the world are pumping money into the auto sector because of the worldwide economic crisis we find ourselves in," he said.

The only place in the world is North America - Canada and the U.S. - where they are insistent that workers give up past gains. That's totally unheard of, it's unfair."

This past month, the CAW became increasingly worried when the Ontario government announced it might not be able to guarantee workers pensions if auto makers went bankrupt.

Hargrove acknowledged that the CAW tried as hard as they could to protect people's pensions in their negotiations.

"The unions have done an incredible job to be able to protect the base wages and the pensions. But again, if a company goes into bankruptcy the question of pensions becomes another very troubling situation."

He said the government "should step up" and protect pensions that members have been contributing to for the past 20 years.

The back-and-forth between auto workers and the government has resulted in some public backlash against the CAW.

Hargrove said Canadians should remember that auto workers have contributed millions of dollars in taxes and are simply asking for what's fair.

"It's our money (the government would be) pumping in. We're not asking for any other money. We paid the taxes. It's our money, we're simply asking for some of our money back to help us in lean times," he said.