The Canadian Auto Workers voted 87 percent for a new agreement with Chrysler that introduces benefit cuts and giving up break time, bonuses, tuition reimbursement and other concessions that amount to $240 million a year savings for the struggling Auburn Hills automaker.

“We are pleased that the men and women of the CAW have voted to ratify this contract,” said Chrysler in a statement. “We know that these are unprecedented times within the automotive industry and we have the utmost respect for the Canadian represented employees.”

Late Sunday, the United Auto Workers also reached a deal with Chrysler (subject to ratification) on labor concessions designed to meet government conditions to help the ailing automaker avoid bankruptcy.

“The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department,” Chrysler said. “As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA. ”

On April 30th, Obama’s auto task force will decided whether or not Chrysler qualifies for up to $9 billion in additional loans. 

- By: Omar Rana