The Canadian Auto Workers union agreed to extend a labour contract deadline at a car seat factory in Canada, averting a possible strike from Sunday that could have shut down Chrysler's North American minivan plant.

An official at the CAW told Reuters the union had agreed to a "rolling 30-day extension" to the contract at Integram Seating which supplies the minivans' seats. The deadline can be rolled forward for up to a year.

Last month, unionised Integram workers voted 98.5% in favor of going on strike if a new labour agreement was not reached by 11 November.

Integram, located in Windsor, southern Ontario, is a unit of Canadian auto parts maker Magna International, based in Aurora in the same province.

Chrysler's Windsor, Ontario, plant, is its only minivan plant in North America.