Aradco, a Canadian supplier of motor mounts and other metal parts to Chrysler, is currently under siege by 80 of its own workers. The standoff began yesterday when a dozen workers occupied the plant and welded the doors shut from the inside. The workers claim they are owned a total of $1.7 million in severance and termination pay after the plant shut down following a dispute between Chrysler and Aradco, both of which claim they are owed money by the other.

The Auburn Hills-based automaker represents 99% of Aradco's business, according to Automotive News, so the Canadian supplier basically went out of business last week when the dispute with Chrysler occured. The automaker is now attempting to retrieve its tooling and any remaining parts from the plant, but was prevented from doing so today by the workers' occupation, despite a police presence at the scene. We've heard reports that both Aradco and Chrysler have offered the employees a total of $200,000 and $205,000 in severance pay, respectively, but the workers rejected both offers, claiming they are owed more.

Chrysler admits that the standoff at Aradco's plant needs to be resolved by the end of this week, otherwise production at several of its North American assembly plants could be interrupted, though it has not yet indicated which ones. With a bloated inventory of unsold vehicles, however, Chrysler may just be able to wait out the workers' resolve. Thanks for the tip, Kris!

[Source: Automotive News, CBC]


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