In a bid to preserve as many Canadian auto jobs as possible, General Motors of Canada has struck a deal with the Canadian Auto Workers under which the autoworkers have agreed to freeze wages and pensions until 2012, divert annual bonuses to retiree health care and eliminate 40 hours of annual paid time off. 

GM, in turn, has agreed to maintain 20% of its manufacturing in Canada as part of the deal.

"What we are doing here is being part of the solution. There were some sacrifices made . . . and we live to fight another day, hopefully," said CAW president Ken Lewenza.

According to Finance Minister Jim Flaherty, this deal is a good initiative toward resuscitating the distressed auto industry, which is suffering the worst slump since the Great Depression.

"There is more to be done -- certainly in terms of reasonable assumptions about our car sales -- about the future of the Detroit Three, but this is a good first step," said Flaherty.

However, a spokesperson for the Canadian Taxpayers Federation wrote off the deal as a waste of tax dollars.