Tuesday deadline for Chrysler Canada to make CAW deal



After declaring that the deal GM struck with the Canadian Auto Workers union wasn't nearly good enough, Chrysler has threatened to pull out of Canada if cannot come to an agreement with the CAW by Tuesday, March 31. Making matters even more pressing is the fact that the Canadian government has set the same deadline for Chrysler's Canadian operations to receive government money. If the CAW and Chrysler don't agree on something, the Canadian treasury closes up the vault.

As of Friday, the two sides were still $12-per-hour away from a deal. Chrysler says it needs a $19-per-hour reduction in labor costs, the CAW says its workers are more efficient than their American counterparts at a $7-per-hour drop. The CAW also claims that Chrysler's negotiators would appear to agree to certain things, and then return to the table with a different set of demands. The theory is that chaperon Cerberus is overruling the negotiators' positions.

Chrysler's response is "Although we made progress toward 'closing the gap', significant issues related to the existing 'pattern' remain on the table. These are not normal business circumstances and all Chrysler constituents have been asked to 'break pattern.'" As for the Canadian government, it has said it "isn't married" to the Tuesday deadline, but it's obvious they don't plan to stand around with a bag of money indefinitely. Hat tip to Dan

[Source: CBC News]


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