Autoblog

Chevy Camaro to be built in US once again

Jeremy Korzeniewski — Wed, 19 Dec 2012 14:17:00 EST

Filed under: Convertible, Coupe, Performance, Government/Legal, Plants/Manufacturing, Chevrolet, GM, UAW/Unions, Canada

General Motors has announced that the next generation of the Chevrolet Camaro will once again be built in the United States, specifically at the Lansing Grand River Assembly Plant in Lansing, MI. The current Camaro has been assembled in Oshawa, Ontario, Canada, since its introduction in 2010.

The automaker cites "lower capital investment and improved production efficiencies" as key reasons for the move - indeed, the Camaro is the only rear-wheel-drive vehicle made in Oshawa; the Buick Regal and Cadillac XTS are currently manufactured there, and the upcoming Chevrolet Impala will join the front-wheel-drive group in 2013. Meanwhile, the Lansing facility currently produces two rear-wheel-drive vehicles - the Cadillac ATS and CTS - which makes the Camaro a natural fit.

The Canadian Auto Workers Union is, as expected, none too pleased by the "callous and poorly thought-out" announcement, "reacting in anger and frustration" according to a statement. CAW National President Ken Lewenza added, "General Motors has once again shown a complete and utter disregard for its workers and also Canadians in general, whose tax dollars kept the company out of bankruptcy."

The CAW says that "GM must replace lost Camaro production on a one-to-one basis." The automaker's own statement says it will "continue to meet the production targets agreed to with the Canadian and Ontario governments during the 2009 restructuring." In any case, production of the current Camaro will continue in Ontario until the next-gen model is ready to go on sale sometime within the next few years.

Feel free to read statements from both General Motors and the CAW below.

Continue reading Chevy Camaro to be built in US once again

Chevy Camaro to be built in US once again originally appeared on Autoblog on Wed, 19 Dec 2012 14:17:00 EST. Please see our terms for use of feeds.

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Chrysler, CAW reach tentative contract agreement

Seyth Miersma — Thu, 27 Sep 2012 16:00:00 EST

Filed under: UAW/Unions

The Canadian Auto Workers union and Chrysler have reportedly come to a tentative agreement, ending a long-running series of contract negotiations. Chrysler was the last of the Detroit automakers to continue negotiating with the CAW, as General Motors and Ford had both recently come to terms with the union.

While the agreed upon terms between the CAW and Chrysler are similar to those with the other automakers, this isn't a carbon-copy deal.

According to Automotive News, Chrysler has offered a $3,000 bonus to union members upon ratification of the deal, with $2,000 inflation bonuses coming due in the second, third and fourth years of the agreement. Significantly, however, Chrysler has made no promises to add more Canadian jobs over the term of the contract, a concession that both Ford and GM did make.

After what CAW president Ken Lewenza (pictured) calls "a tug of war," the contract needs only now be ratified to take effect. Ratification votes for the 8,000 Canadian Chrysler workers/CAW members will take place sometime in the next several days.

Chrysler, CAW reach tentative contract agreement originally appeared on Autoblog on Thu, 27 Sep 2012 16:00:00 EST. Please see our terms for use of feeds.

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CAW and Ford ratify agreement, Chrysler still pending

George Kennedy — Mon, 24 Sep 2012 15:31:00 EST

Filed under: Chrysler, Ford, GM, UAW/Unions, Canada

According to the Detroit Free Press, Ford's Canadian employees have ratified their union contract, making Chrysler the only automaker to not have worked out an agreement with its Canadian workforce. Employees from Ford of Canada voted 82 percent in favor of a new national contract following a weekend's worth of voting.

There are 21,000 Canadian Auto Workers union members, 4,500 of which are from Ford. While General Motors workers are set to ratify a new contract on Wednesday, Chrysler has made no such progress with its staffers.

CAW President Ken Lewenza (shown above) says that a Chrysler deal could come soon, "If they meet pattern, we could wrap up tomorrow," suggesting that Chrysler could follow the lead of Ford and GM's deals. However, the Fiat-owned automaker has reportedly made stronger demands for concessions than that of GM or Ford.

According to the report, the agreement with Ford includes the addition of 635 jobs over the life of the contract, to be filled mostly with previously laid-off employees. 583 workers were laid off from the Windsor plant, while another 280 were released from St. Thomas.

Plans to keep producing engines such as the Windsor-built 5.4-liter V8 engine and the 6.8-liter V8 have helped bolster the deal. Meanwhile, Ford is set to announce that its EcoBoost engine will be built in China because the nation's government has rules requiring domestic production.

CAW and Ford ratify agreement, Chrysler still pending originally appeared on Autoblog on Mon, 24 Sep 2012 15:31:00 EST. Please see our terms for use of feeds.

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GM, CAW reach tentative agreement

Zach Bowman — Fri, 21 Sep 2012 13:03:00 EST

Filed under: Plants/Manufacturing, GM, UAW/Unions, Canada

Automotive News reports General Motors and the Canadian Auto Workers have reached a tentative labor agreement that will see the automaker invest $692.8 million into Canadian facilities over the life of the four year-deal. The two groups closed a 30-hour negotiating session that touched on everything from wages and benefits, to plant closings and new model manufacturing. The agreement covers around 8,200 workers currently, and GM has agreed to add or maintain 1,750 positions over the next four years. That means the automaker will postpone the consolidation of the company's Oshawa plant, where the current Chevrolet Impala is assembled. The manufacturer had planned to completely shutter the line, impacting around 2,000 workers.

GM will continue with plans to assemble the next-generation Impala at its Hamtramck facility, but will now also build the 2014 model on one shift in Oshawa. The move will employ around 750 Canadian workers, though that number may grow if the production is moved to two shifts later in 2014.

Even so, the CAW isn't entirely happy with the proposed settlement. The union was not able to secure the production of another vehicle. Union leaders say that's largely due to the fact that GM is in market share decline in Canada.

As you may recall, the CAW recently reached a similar tentative agreement with Ford.

GM, CAW reach tentative agreement originally appeared on Autoblog on Fri, 21 Sep 2012 13:03:00 EST. Please see our terms for use of feeds.

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CAW reaches tentative agreement with Ford

Seyth Miersma — Mon, 17 Sep 2012 18:01:00 EST

Filed under: Plants/Manufacturing, UAW/Unions

After seeming to be at an impasse as late as this morning, the Canadian Autoworkers union and Ford have reached a tentative agreement with just hours to go before the CAW's work stoppage deadline.

The deal that has been agreed upon will run for the next four years and cover around 4,500 Canadian Ford employees. CAW members will see no base wage adjustments under the plan, though hourly employees will receive lump sum payments. Further, the automaker will create an additional 600 jobs in Canada.

The union was unable to secure cost-of-living adjustments for its retired members, however, and there are to be no changes in the overall structure of pension plans.

CAW President, Ken Lewenza said of the tentative plan, "It's a damn good deal in these economic times."

In the meantime, CAW officials continue to negotiate with General Motors and Chrysler. The union hopes to use the Ford deal as a blueprint for agreements with those companies, as well. This might not be a simple thing to do for a number of reasons. The CAW has been characterized as having a stronger relationship with Ford than with the other two companies; both Chrysler and GM have more at stake with this deal, as both employ roughly 8,000 CAW members compared with Ford's 4,500.

CAW reaches tentative agreement with Ford originally appeared on Autoblog on Mon, 17 Sep 2012 18:01:00 EST. Please see our terms for use of feeds.

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CAW asked to keep working as deadline looms

Seyth Miersma — Mon, 17 Sep 2012 11:24:00 EST

Filed under: Chrysler, Ford, GM, UAW/Unions

Representatives from the Canadian Auto Workers union and Ford continue to work on new national agreement. The deadline for reaching a deal is tonight at midnight.

Urging solidarity in these high-stakes last hours, CAW leadership has asked its members to stay on the job at all locations. In an update this morning, union leaders claimed that leaving the job site would have "serious negative consequences" for the bargaining committee's ability to get a strong result.

The CAW is currently in negotiations with all three of the Detroit automakers, though Ford has emerged as a top priority for the organization. Ford has reportedly been more willing to consider the union's proposal of a lower rate and longer "grow-in period" for new hires, rather than moving to the two-tier wage system that has been adopted by the United Auto Workers - the two-tier system is still being advanced by General Motors and Chrysler. If a deal is indeed reached with Ford, the CAW will take it to GM and Chrysler to match.

Should an agreement not be reached by 11:59 PM this evening, CAW officials report there could be a work stoppage at "one or even all three of the companies." A strike at all three automakers would affect roughly 20,000 employees.

CAW asked to keep working as deadline looms originally appeared on Autoblog on Mon, 17 Sep 2012 11:24:00 EST. Please see our terms for use of feeds.

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Detroit Three ask for big cuts from CAW, union unwilling to acquiesce

George Kennedy — Tue, 11 Sep 2012 09:59:00 EST

Filed under: Plants/Manufacturing, Chrysler, Ford, GM, UAW/Unions, Canada, Fiat

The Detroit Big Three are seeking "dramatic changes" in their contracts with the Canadian Auto Workers. According to a Reuters report, the CAW claims that the U.S. automakers are angling for deep pension and benefit cuts. The CAW says it has no intention of adhering to these proposed cuts.

According to the report, the CAW is staring down "unprecedented demands" from Ford, General Motors and Chrysler, as the current agreement between the parties is set to expire in one week.

One of the main points of contention surrounds a clause in the current deal, which expires September 17 at 11:59 p.m. EST. That clause would allow any worker with 30 years of experience to retire on full pension. The automakers are seeking to dissolve this clause.

The report also states that American automakers are refusing to commit to any new production investments in Canada. The CAW is demanding that the Big Three make such a commitment for the deal to go through.

According to a separate Detroit Free Press report, CAW President Ken Lewenza asserted that he plans to resist these wage and benefit concessions in the contract talks at this stage.

Other concessions being demanded by the Big Three include the creation of a second-tier workforce for newer employees. This would mirror the agreement set up with the UAW in America. The automakers are also asking that any new bonuses or pensions come from cuts made in other areas. At this time, all three American automakers declined to comment on these concessions, through Sergio Marchionne said last week that he would consider moving production to other plants if the CAW would not concede to its proposals.

Detroit Three ask for big cuts from CAW, union unwilling to acquiesce originally appeared on Autoblog on Tue, 11 Sep 2012 09:59:00 EST. Please see our terms for use of feeds.

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CAW votes to authorize strikes against GM, Ford and Chrysler

Jeff Sabatini — Tue, 28 Aug 2012 09:28:00 EST

Filed under: Plants/Manufacturing, Chrysler, Ford, GM, UAW/Unions, Canada

The Canadian Auto Workers Union may soon be a thing of the past, but it still has to negotiate one more contract with the Big Three before its planned merger with the Canadian Communications, Energy and Paperworkers Union. The current deal expires on Sept. 17, so CAW representatives are meeting with the automakers this week in Toronto - and they're coming armed with a strike authorization, according to The Detroit News.

While we can't call the vote unanimous, some 99 percent of Chrysler union members voted in favor of walking out, with 98 percent of General Motors workers and 97 percent of Ford workers authorizing the action if the parties can't come to terms. According to the report, the last CAW strike occurred in 1996.

CAW votes to authorize strikes against GM, Ford and Chrysler originally appeared on Autoblog on Tue, 28 Aug 2012 09:28:00 EST. Please see our terms for use of feeds.

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Canadian Auto Workers vote to merge with rival, form 'super union'

Jeff Sabatini — Thu, 23 Aug 2012 17:31:00 EST

Filed under: UAW/Unions, Canada

How would you respond to the headline "No More Auto Workers Union"? Our northern neighbors will likely be bidding goodbye to their Canadian Auto Workers Union, as the membership has agreed to merge with the country's Communications, Energy and Paperworkers Union.

The Vancouver Sun is reporting that a unanimous vote of delegates at the CAW's convention has approved the merger. If finalized, the new organization will have more than 300,000 members, most of them working in manufacturing, communications and transportation. The CEP still has to vote on the proposal in October, but its president seems bullish on the merger, describing it as a "bigger and better union," according to the report.

CAW president Ken Lewenza (pictured above) agreed, saying, "This union will pose a serious challenge to the unrepresentative, unfair economic and political systems workers now find themselves caught in."

A new name for the combined organization has not yet been determined.

Canadian Auto Workers vote to merge with rival, form 'super union' originally appeared on Autoblog on Thu, 23 Aug 2012 17:31:00 EST. Please see our terms for use of feeds.

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CAW making progress in drive to unionize Honda in Ontario

Jeff Sabatini — Sun, 01 Jul 2012 14:02:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Honda, UAW/Unions, Canada

Honda of Canada Manufacturing in Alliston, Ontario, is unique in providing an employee recreation center with an NHL regulation-size hockey arena. But it could soon have another claim to notoriety: The first Japanese auto plant to go union.

According to Ward's Auto, Canadian Auto Workers President Ken Lewenza is bullish on efforts to organize the facility, which builds Honda Civic and CR-V, as well as the Acura MDX and ZDX. "We're getting some enthusiastic and strong support," he told Ward's, "but we're not there yet."

Both the CAW and the United Auto Workers have been trying for decades to organize at one of the Japanese transplant factories, but have met resistance, both from employees as well as the automakers. Lewenza says Honda has devoted "resources and time into keeping the union out," according to the report, including giving employees a handout that the CAW feels misrepresents Honda's wages when compared to unionized Chrysler, Ford and General Motors plants in Canada.

The report says labor talks between the CAW and the Big Three scheduled for September will be crucial for the union, given the resurgent strength of the Canadian dollar. Canada's labor costs are viewed as too high by the automakers, setting the stage for potential conflicts at the bargaining table. Of course, if the CAW could add to its 25,000 member base with Honda's roughly 4,500 Canadian workers, it could only help the union's negotiations.

CAW making progress in drive to unionize Honda in Ontario originally appeared on Autoblog on Sun, 01 Jul 2012 14:02:00 EST. Please see our terms for use of feeds.

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Canada lagging behind U.S. auto recovery

Chris Shunk — Wed, 28 Dec 2011 08:01:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, UAW/Unions, Canada

The Detroit Three are in much better financial shape than three years ago. General Motors and Ford are now profitable, and Chrysler appears poised to begin making real money soon. That success has lead to plans to spend billions of dollars on North American plants, but Automotive News reports that our friends to the north aren't seeing much of the money.

Ford, GM and Chrysler are reportedly planning to spend at least $13.3 billion in the U.S. in the next four years, but investment in Canadian plants is dropping fast. In fact, there was only $1.2 billion in plant spending in Canada in 2011, down 62 percent versus the average of the last decade. A big reason for the decline in spending is the strength of the Canadian dollar and the relative weakness of the U.S. dollar.

Automakers are also spending more in the U.S. thanks to a new labor agreement with the United Auto Workers, which helps level labor costs compared to foreign rivals. Meanwhile, automakers and the Canadian Auto Workers are now working on a new contract for 2012. The CAW has so far fought many of the cost cuts that the UAW has accepted.

To make matters worse for our northern neighbors, Ford closed the St. Thomas plant that once built the Lincoln Town Car and Ford Crown Victoria, and GM ha reportedly announced plans to build two models in the U.S. that are currently being built in Canada.

We're guessing that while the Canada announcements have been few and far between in the past year or two, that could change if the CAW makes a few concessions at the bargaining table in 2012. If not, auto jobs in Canada could be in real trouble.

Canada lagging behind U.S. auto recovery originally appeared on Autoblog on Wed, 28 Dec 2011 08:01:00 EST. Please see our terms for use of feeds.

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Will GM shift Chevy Equinox and GMC Terrain assembly to Spring Hill?

Zach Bowman — Fri, 23 Sep 2011 11:01:00 EST

Filed under: Plants/Manufacturing, Crossover, Chevrolet, GM, GMC, UAW/Unions, Canada

Automotive News is reporting that the Canadian Auto Workers union is concerned that General Motors may shift production of the Chevrolet Equinox and GMC Terrain from its current location near Toronto to the automaker's Spring Hill, Tennessee facility. GM recently agreed to open the southern plant as part of its agreement with the United Auto Workers, and CAW President Ken Lewenza says that the company won't tell him whether or not Equinox and Terrain production will continue to hang around his neck of the woods. GM, meanwhile, says that it won't comment on future production plans.

There is a chance that full-scale production of the two crossovers would remain in Canada while overflow production could land on the shoulders of the Spring Hill facility. That would retain jobs in both locations, and help GM alleviate its tight supply of the vehicles. Automotive News reports that currently, dealers are operating with a 33-day supply of Equinox models and a 42-day supply of Terrain vehicles. Those figures give the crossovers the distinction of having the thinnest supply of any of the automaker's high-volume vehicles.

Will GM shift Chevy Equinox and GMC Terrain assembly to Spring Hill? originally appeared on Autoblog on Fri, 23 Sep 2011 11:01:00 EST. Please see our terms for use of feeds.

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New contract between Ford and UAW voted down over weekend

Noah Joseph — Mon, 02 Nov 2009 13:30:00 EST

Filed under: Ford, UAW/Unions

What's good for the goose may be good for the gander, but what works for one country or automaker doesn't necessarily work for another. So while the Canadian Auto Workers union may have approved a new agreement with Ford, below the 49th parallel their compatriots apparently feel otherwise.

Up for ratification over the past week and into the weekend was a proposal that would essentially grant Ford the same measures that unionized auto workers extended to Chrysler and General Motors in the midst of their bankruptcy proceedings. The measures include limitations placed on the unionized workers' rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created - or at least fewer to be lost.

Some union leaders pleaded with their constituents that ratification of the deal was essential to keeping all three of the Detroit automakers on an even keel, thereby maintaining a common ground on which to build negotiations for the future. However as voting drew to a close across the country this weekend, UAW members at three of Ford's largest U.S. plants - the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant - all voted against the new contract, making its passage now virtually impossible.

[Source: The Detroit News | Image: Scott Olson/Getty]

New contract between Ford and UAW voted down over weekend originally appeared on Autoblog on Mon, 02 Nov 2009 13:30:00 EST. Please see our terms for use of feeds.

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REPORT: GM reaches deal with Canadian Auto Workers union

Frank Filipponio — Fri, 22 May 2009 15:58:00 EST

Filed under: GM, Earnings/Financials, UAW/Unions

After two weeks of intense negotiations, General Motors Canada and the Canadian Auto Workers (CAW) union have reached a deal that will help the automaker cut costs, allowing it to meet the terms for additional government loans. Ken Lewenza, head of the CAW, said it was "a struggle" to reach a deal with GM, but he added that the union had done the best it could under the circumstances, saying: "we have protected most of our core benefits."

Wages, pensions and most benefits were preserved, although restructured in some instances. The union's pension rates will be frozen until 2015, for instance. The deal also keeps GM's plants in Oshawa, St. Catharines and Woodstock open for the foreseeable future. In total, it is believed that the new deal will result in $15 to $16 hourly wage savings on average. The announcement comes a day after the UAW reached a deal of its own with GM.

Although a different agreement was signed with the CAW in March, it had been rejected by the provincial and federal governments who wanted more cost-cutting to avoid bankruptcy. Although GM now appears to be heading in the same direction as Chrysler, hopefully there will be enough progress before the June 1 deadline to keep Chapter 11 a viable option. All told, the recent deals mean that 16 GM factories will close and an additional 21,000 hourly workers will be out of a job.

[Source: CTV]

REPORT: GM reaches deal with Canadian Auto Workers union originally appeared on Autoblog on Fri, 22 May 2009 15:58:00 EST. Please see our terms for use of feeds.

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GM warns UAW and Treasury deals won't be done in time

Jeremy Korzeniewski — Thu, 21 May 2009 08:33:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, GM, UAW/Unions, Canada

Not that it should come as a major shock to anyone paying attention over the last few weeks, but in a regulatory filing submitted by General Motors on Tuesday, the beleaguered automaker has admitted that it's unlikely to have acceptable deals negotiated with the either the United Auto Workers or Canadian Auto Workers unions before the previously announced deadline of May 27.

Equally as unsurprising are rumors that GM's plan to begin importing 50,000+ cars from China by 2014 is one of the major stumbling blocks in UAW negotiations. Other sticking points surely include how best to slash the desired $1 billion in annual labor costs that the two parties reportedly targeted and how to fund the Voluntary Employees Beneficiary Association (VEBA) health care trust.

Furthermore, the Detroit Free Press is reporting that CAW union leaders are upset at the way they are being treated in negotiations. A flier passed out to Canadian union workers had this to say:

"Because the Canadian and U.S. governments are planning a joint effort to support GM's restructuring, we now face a dangerous attempt to enforce a 'cookie-cutter' approach on our bargaining. This philosophy is absolutely offensive to us as Canadians."

More than ever before, it seems almost a foregone conclusion that GM will file for bankruptcy on June 1st. Hold on tight, this promises to be a wild ride.

[Source: Detroit Free Press | Image: Bill Pugliano/Getty]

GM warns UAW and Treasury deals won't be done in time originally appeared on Autoblog on Thu, 21 May 2009 08:33:00 EST. Please see our terms for use of feeds.

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Let's Make a Deal: Chrysler, Canadian Auto Workers agree on union concessions

Alex Nunez — Sat, 25 Apr 2009 10:22:00 EST

Filed under: Plants/Manufacturing, Chrysler, UAW/Unions, Canada

The April 30th deadline to reorganize looms larger by the second, and Chrysler is scrambling to make deals that could theoretically help it stave off a bankruptcy filing next week. For that to happen. Chrysler needs to get concessions from labor unions and lenders that make the financial situation palatable enough for Fiat to step in and make the automaker "financially viable" in the eyes of the President's auto industry task force. To that end, it appears that the contentious situation north of the border between the automaker and the Canadian Auto Workers union has ended in an agreement -- not that the CAW brass sounds particularly happy about it. Follow the jump for the rundown of what the proposed deal entails.

Continue reading Let's Make a Deal: Chrysler, Canadian Auto Workers agree on union concessions

Let's Make a Deal: Chrysler, Canadian Auto Workers agree on union concessions originally appeared on Autoblog on Sat, 25 Apr 2009 10:22:00 EST. Please see our terms for use of feeds.

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CAW President Lewenza issues address responding to Nardelli/Lasorda letter

Jonathon Ramsey — Mon, 20 Apr 2009 16:58:00 EST

Filed under: Plants/Manufacturing, Chrysler, UAW/Unions, Canada

The top dogs at Chrysler sent a letter to the Canadian Auto Workers union that essentially said that the automaker needed wage concessions of $19 per hour, or else it was Game Over. As a further way to apply pressure, Chrysler's letter frequently referenced the U.S. and Canadian governments as heavies, all of them now waiting for the CAW to provide the necessary "support."

In response, CAW members burned the letter, but not before making notes so it could pen a response of its own. In an official response, CAW President Ken Lewenza calls Chrysler's missive "the most offensive attempt yet" to undermine the CAW, then decries statements made by the Canadian government about the situation. He follows that with a point-by-point defense of the CAW's cost and efficiency, and accuses Chrysler of not only playing with the numbers, but of changing the rules every time a game is agreed upon.

He finishes by stating that instead of looking at the CAW, Chrysler should be speaking to its bondholders who, so far, appear to have been left out of game of sacrifice. You can read those and the rest of his thoughts in the full letter after the jump. Hat tip to Bob!

[Source: CAW]

Continue reading CAW President Lewenza issues address responding to Nardelli/Lasorda letter

CAW President Lewenza issues address responding to Nardelli/Lasorda letter originally appeared on Autoblog on Mon, 20 Apr 2009 16:58:00 EST. Please see our terms for use of feeds.

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Tuesday deadline for Chrysler Canada to make CAW deal

Jonathon Ramsey — Sun, 29 Mar 2009 16:15:00 EST

Filed under: Plants/Manufacturing, Chrysler, Earnings/Financials, UAW/Unions, Canada

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]

Tuesday deadline for Chrysler Canada to make CAW deal originally appeared on Autoblog on Sun, 29 Mar 2009 16:15:00 EST. Please see our terms for use of feeds.

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Worker standoff at Chrysler supplier plant ends

Jeremy Korzeniewski — Fri, 20 Mar 2009 13:27:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, UAW/Unions, Canada

Remember the worker standoff at Aradco, the Canadian supplier of engine mounts to Chrysler? The automaker had said that the dispute would need to be settled by the end of the week - that would be today, of course - and that's exactly what has happened. According to Canadian Driver, an agreement has been reached between the Canadian Auto Workers union employees and the automaker that sees the displaced employees repaid most of what they were owed, which they claim included a total of $1.7 million in severance, termination and vacation pay.

Even though this particular event had a mostly happy ending, union officials in Canada have scolded Chrysler for allowing it to happen in the first place. With a possible bankruptcy looming over two of America's major automakers, this is a salient point that could be revisited time and time again until things get back on track. In Canada's case, though, the country could just lose Chrysler's manufacturing presence altogether.

[Source: Canadian Driver]

Worker standoff at Chrysler supplier plant ends originally appeared on Autoblog on Fri, 20 Mar 2009 13:27:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler considering pulling out of Canada

Chris Paukert — Wed, 18 Mar 2009 09:56:00 EST

Filed under: Plants/Manufacturing, Chrysler, Dodge, Earnings/Financials, UAW/Unions, Rumormill

According to The Canadian Press, Chrysler may elect to pull all manufacturing operations out of Canada if it cannot come to an agreement with the Canadian Auto Workers by month's end. The embattled automaker is looking negotiating with the CAW in part to reduce wages from an average of $76 to $57, and as part of a contingency plan/ bargaining chip, it is reportedly architecting a wholesale pullout from America's northern neighbors.

The pullout would jeopardize some 10,000 jobs at the company's two plants in Ontario and another facility in Toronto. It would also mean that production would have to shift (or end) for a number of key Chrysler products, including the company's minivans (and Volkswagen's Routan), as well as the Chrysler 300, Dodge Charger, and Dodge Challenger. The likely alternatives, say analysts, would be to push minivan production back to the St. Louis plant that produced them up until last year, and potentially move the LX-platform cars to facilities in Michigan or Mexico,

For its part, Chrysler is looking for more concessions from the CAW than was recently given to rival General Motors last week. That labor agreement reportedly cut labor costs by around $7 an hour - far short of what Chrysler says it needs to return to profitability. Part of those concessions could come in the form of benefit cuts, as in several areas CAW employees enjoy even better benefits than their UAW counterparts. According to The Canadian Press, CAW workers receive a maximum of six weeks paid vacation (versus five for UAW workers), as well as "substantially more break time per shift." Of course, the automaker's benefit costs are kept down because of Canada's socialized medicine.

If Chrysler does decide to pull its manufacturing base out of Canada, it could risk a countrywide consumer boycott, so watch for Auburn Hills to tread carefully as it negotiates with CAW officials. Either way, expect some sort of resolution by month's end, lest it risk passing deadlines for the further $2.3 billion in aid it expects. Top tip, LIP!

[Source: The Canadian Press via Wheels.ca | Image: Bill Pugliano/Getty]

REPORT: Chrysler considering pulling out of Canada originally appeared on Autoblog on Wed, 18 Mar 2009 09:56:00 EST. Please see our terms for use of feeds.

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