CAW members will vote this weekend on a tentative deal with Chrysler that the union says will save the automaker $240 million per year.

Voting is scheduled for Saturday and Sunday at Chrysler plants in Toronto, Mississauga, Ont., and Windsor, Ont.

A dejected-looking Ken Lewenza announced the deal, which includes massive cuts to the union's benefit plan, during a news conference Friday evening.

"This agreement meets the benchmark that was set by the federal government to guide our bargaining," the CAW president said.

"Some of it comes from reduced compensation, some of it comes from lower legacy costs, some of it comes from increased productivity and efficiencies in the workplace."

The union's concessions include: reductions to paid relief time, cuts to supplementary unemployment benefits and prescription drug fees, and the removal of semi-private hospital coverage, employee car purchase benefits and tuition rebate programs.

Neither base wages nor pensions are cut in the deal, but salaries of new workers will increase more slowly and there will be more jobs for 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.

Chrysler employs about 10,000 hourly workers and 1,000 salaried employees. It operates assembly plants in Windsor and Brampton, and a casting plant in Toronto.

The company has until April 30 to work out a partnership with Italian automaker Fiat and to establish new deals with U.S. workers and other stakeholders before it submits a restructuring plan to the Canadian and U.S. governments to secure long-term bailout funds.

Ottawa and Queen's Park have already given $750 million of the $1 billion it previously promised the company and promises to match U.S. government funds if Chrysler maintains Canada's current share of total production.

Without a viable restructuring plan, Chrysler will likely have to file for bankruptcy protection or liquidate its assets.

With files from The Canadian Press