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]
Reader Comments (Page 1 of 1)
Sektor 4:49PM (3/29/2009)
It's funny that Chrysler is playing hardball in Canada.
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Gardiner Westbound 4:49PM (3/29/2009)
This link to a Friday BNN interview with former CAW union boss Buzz Hargrove explains the CAW's position. The pertinent quote is at 1:20 in the clip. Amanda Lang is Canada's "money honey"
http://rde.me/LN.
The CAW is calling Chrysler’s bluff. Hargrove says there is no way Chrysler will abandon Canada. The Canadian plants are the only ones that make money and it will cost a billion dollars, which Chrysler doesn’t have, and take months to relocate production.
Chrysler Canada’s also has to be concerned about the public's reaction. Its 200,000 annual sales will likely plunge to zero if it pulls out.
Finally, the Canadian government has an $800-million tax lien on the Brampton Chrysler plant. The equipment there isn’t going anywhere.
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wally 6:00PM (3/29/2009)
The government will sell to highest bidder. GUESS WHO IS THE ONLY COMPANY THAT WANT or CAN USE IT?????????????
Glenn 2:35AM (3/30/2009)
Unfortunately the Canadian market has a very long history (as does the US) of not particularly caring where a product comes from. So political problem potentially, but as long as they have a great product, Canadians will buy. Besides if it is a problem, just install the tires and bumper here and call it "made in Canada" .. that has worked for years with most of the foreign brands.
Toyota has said it will be lowering wages at its plants .. what makes our Unions feel they are "sacrificing" when they are still living in an entirely different economic reality then the rest fo us are facing daily.
We have great plants and employees etc .. but the exit strategy has been already hinted about .. they could liquidate these plants for some needed cash .. or our government could almost grab them if Chryser still owes them money. There are lots of foreign -- ie China and perhaps India -- companies very hungry for those plants.
unni 6:20PM (3/29/2009)
let Chrysler go away, and they should not be allowed to sell in Canada. Simple deal: get all the taxes.Canada can liquidate all the assets of Chrysler and get the taxes and invite some other Chinese/Indian manufacture and use the plants.
Mahindra has good off road offers and we will have good cars :-)
End of story
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Dan 7:37PM (3/29/2009)
How about no.
End of story.
wally 4:11AM (3/30/2009)
Those plants are just buildings, Chrysler owns all equipment!!!!
LX builder 7:46PM (3/29/2009)
The Emperor is bare. Nuff said.
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Carlos 8:59PM (3/29/2009)
Leave Canada, and actually use the under used American plants.
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Steve 4:32AM (3/30/2009)
Just make it $13. It's called SHARING.
Weren't we taught this as kindgerteners?
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J.Pettitt 1:06PM (3/30/2009)
Most people can live with a wage around $18 to $22 per hr why can the auto sector not.
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J.Pettitt 1:09PM (3/30/2009)
I also think thework force would rather take pay cut than a job cut. But the CAW wants to keep collecting there huge union dues from the workers so that will not happen.
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Sara 7:38PM (4/20/2009)
I think that Canada should let Chrysler go! I have no sympathy for the employees and the CAW in these economical times. The employees make great money with very little education. I am an ER nurse who works long hours and make less money than the Chrysler employees.
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