CAW, Chrysler still far apart

Discussion in 'General Motoring' started by Jim Higgins, Mar 29, 2009.

  1. Jim Higgins

    Jim Higgins Guest

    CAW, Chrysler still far apart
    http://www.thestar.com/business/article/610027

    March 28, 2009
    THE CANADIAN PRESS

    The head of the Canadian Auto Workers says his union and Chrysler Canada
    remain far apart as a Tuesday deadline looms for the automaker to submit
    a restructuring proposal to the federal and Ontario governments.

    The union's negotiating team held meetings about the talks to update its
    membership in Brampton and Etobicoke today and will hold another such
    meeting in Windsor on Sunday morning.

    CAW President Ken Lewenza says the team "went through the difficulties"
    it's having and in both meetings, it was "almost unanimous that the
    pattern agreement struck at General Motors must be the objective of the
    union."

    Lewenza says most of the discussions involving the CAW and Chrysler at a
    hotel in Toronto today are with smaller groups at the higher levels of
    both the union and automaker.

    But he says he doesn't expect face-to-face negotiations involving the
    master bargaining committee members today or early Sunday.

    Chrysler has asked the federal and Ontario governments for US$2.3
    billion in loans and is seeking deeper concessions from the CAW,
    including on wages, than GM agreed to earlier this month.



    'Now we're miles apart': CAW of Chrysler talks
    http://www.financialpost.com/story.html?id=1435387

    Chrysler LLC and the Canadian Auto Workers union are locked in a
    contract impasse that threatens the automaker's bid to win
    US$2.25-billion in loans from the federal and Ontario governments and
    stay in Canada.

    Chrysler warned the CAW it must agree to a materially different labour
    deal than the one the union struck earlier this month with General
    Motors Corp. if the company is to continue building minivans and cars in
    the country. The ultimatum came Friday afternoon, just hours after the
    CAW insisted Chrysler must accept the GM contract as the general pattern.

    "After several days of bargaining in good faith, Chrysler and the CAW
    have not reached an agreement that closes the competitive gap with other
    automobile manufacturers in Canada to ensure Chrysler's immediate
    viability," the company said in a release, adding it needs to cut all-in
    labour costs for active and retired workers by $19 an hour right away.

    "Although we made progress toward 'closing the gap,' significant issues
    related to the existing 'pattern' remain," Chrysler said. "These are not
    normal business circumstances and all Chrysler constituents have been
    asked to 'break pattern' -- employees, retirees, dealers, suppliers and
    others." The company said it was seeking a contract in which worker base
    wages and pensions remained unchanged.

    CAW workers have approved a new contract with GM. If that deal were
    applied to Chrysler, it would cut Chrysler's all-in costs by $7.25 per
    hour, industry sources said. The union and Chrysler had negotiated
    several productivity and operational changes worth several dollars per
    hour more than the GM agreement, CAW economist Jim Stanford said.

    The union has traditionally negotiated a new contract with one of
    Detroit's three carmakers and used it as a general pattern for talks
    with the other two. The aim is to maintain the companies on an equal
    competitive keel.

    "Two times in the last 48 hours we were within inches of a collective
    agreement," CAW President Ken Lewenza said. "Now we're miles apart."

    Mr. Lewenza questioned who was making the final decisions at Chrysler,
    saying it has been difficult to determine the company's definitive
    stance on issues. The automaker is controlled by New York investment
    firm Cerberus Capital Management.

    Chrysler said it is still open to talks. Mr. Lewenza said he wants
    Chrysler to submit a final offer for his consideration so a deal can be
    reached by March 31. The union will not strike to strengthen its
    position, he said.

    Chrysler is asking the union to help it cut all-in hourly labour costs
    from the current $76 an hour to $57 an hour, the rate Toyota Motor
    Manufacturing Canada pays its workers. It has threatened to pull its
    manufacturing operations out of Canada if the CAW fails to narrow that
    $19 per hour gap, putting 9,400 jobs at risk.

    GM is seeking an estimated US$6-billion in loans from Ottawa and Queen's
    Park to stabilize its footprint in Canada. Chrysler, which has assembly
    plants in Windsor and Brampton, Ont., is seeking US$2.25-billion. Both
    companies were required to cut labour costs to be considered for
    government aid.

    GM and Chrysler have received a combined US$17.4-billion from the U.S.
    Treasury to avoid collapse. They're seeking as much as US$21.6-billion
    more in addition to the Canadian loans.

    Barack Obama, the U.S. President, is expected to detail his intentions
    for the companies on Monday, the day before a March 31 deadline by which
    the automakers are required to submit progress reports detailing new
    union and lender agreements. Tony Clement, Canada's industry minister,
    said he would make an announcement about helping the two automakers
    before the end of the month.
     
    Jim Higgins, Mar 29, 2009
    #1
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