Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[New contract between Ford and UAW voted down over weekend]]>http://www.autoblog.com/2009/11/02/new-contract-between-ford-and-uaw-voted-down-over-weekend/http://www.autoblog.com/2009/11/02/new-contract-between-ford-and-uaw-voted-down-over-weekend/http://www.autoblog.com/2009/11/02/new-contract-between-ford-and-uaw-voted-down-over-weekend/#commentsFiled under: ,



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.

Read | Permalink | Email this | Comments]]>canadian auto workersCanadianAutoWorkerscawcontractcontract negotiationsContractNegotiationsfo mo coFoMoCoFordford motor companyFordMotorCompanynegotiationratifyuawunionUnited Auto WorkersUnitedAutoWorkersMon, 02 Nov 2009 13:30:00 EST<![CDATA[(Black and) Blue Oval: Ford of Canada labor costs reportedly world's highest]]>http://www.autoblog.com/2009/10/03/black-and-blue-oval-ford-of-canada-labor-costs-reportedly-wor/http://www.autoblog.com/2009/10/03/black-and-blue-oval-ford-of-canada-labor-costs-reportedly-wor/http://www.autoblog.com/2009/10/03/black-and-blue-oval-ford-of-canada-labor-costs-reportedly-wor/#commentsFiled under: ,



it wasn't long ago that U.S. automakers were producing a high percentage of their new products in Canada because labor costs were lower up north than are here in the States. The cost paradigm changed considerably after GM and Chrysler went into Chapter 11 reorganization, as the ailing automakers secured better labor deals with both U.S. and Canadian unions, making the UAW and CAW more competitive versus Japanese automakers.

The United Auto Workers renegotiated with Ford, giving Dearborn terms similar to those it gave GM and Chrysler. Ford reportedly told The Globe and Mail that it now pays about $52 per hour for U.S. labor after benefits. Unfortunately for Ford, the CAW hasn't extended the same helping hand labor-wise, and the Blue Oval isn't very happy. Ford says it is paying $16 more per hour for its Canadian workforce than it is for U.S. workers. In fact, Ford says its labor situation in Canada is so bad that the Blue Oval alleges its labor costs there are now higher than in any other region on earth.

The Canadian Auto Workers union appears willing to negotiate, but The Globe and Mail reports that it wants job security in return. Ford's St. Thomas plant, which currently builds the Panther-platformed Lincoln Town Car, Ford Crown Victoria and Mercury Grand Marquis, is scheduled for closure at some point in the next two years, and the CAW would like Ford to instead guarantee a new product for the facility. The CAW says it wants to continue to account for 13% of Ford's North American production, but closing the plant and laying off its 1,600 workers would shrink that number to 9%. So far, neither party seems to be budging, but we have a feeling Ford won't be paying the highest labor rates anywhere for very much longer.

[Source: The Globe and Mail]

(Black and) Blue Oval: Ford of Canada labor costs reportedly world's highest originally appeared on Autoblog on Sat, 03 Oct 2009 13:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cawcrown victoriaCrownVictoriafordgran marquisGranMarquisst thomas plantStThomasPlanttown carTownCaruawSat, 03 Oct 2009 13:02:00 EST<![CDATA[FYI: UAW releases list of 2010 cars and trucks made in union shops]]>http://www.autoblog.com/2009/09/24/fyi-uaw-releases-list-of-2010-cars-and-trucks-made-in-union-sho/http://www.autoblog.com/2009/09/24/fyi-uaw-releases-list-of-2010-cars-and-trucks-made-in-union-sho/http://www.autoblog.com/2009/09/24/fyi-uaw-releases-list-of-2010-cars-and-trucks-made-in-union-sho/#commentsFiled under: , ,



There's "Buy American!" and then there's "Buy Union!" If you're among the most serious about keeping your red-white-and-blue money in the U.S. of A North America and organized labor is close to your ticker, then you'll want to check out this list put together by the United Auto Workers. It lists all of the vehicles made in America and Canada by union labor -- either UAW or CAW.

Naturally, it's heavy on domestic offerings, but if you're devoted to imports you can still avail yourself of a few Toyotas, Mazdas, Mitsubishis, and a VW Routan, and support "workers who enjoy the benefits and protections of a union contract." Nevertheless, knowing how some feel about unions all we ask is please stay on topic and please be kind to your virtual neighbor. Let the comments begin...

[Source: UAW]

FYI: UAW releases list of 2010 cars and trucks made in union shops originally appeared on Autoblog on Thu, 24 Sep 2009 17:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>canadacawmanufacturingplantplantsuawunionunionsusaThu, 24 Sep 2009 17:02:00 EST<![CDATA[REPORT: Two plants saved from closing under new GM/UAW agreement]]>http://www.autoblog.com/2009/05/30/report-two-plants-saved-from-closing-under-new-gm-uaw-agreement/http://www.autoblog.com/2009/05/30/report-two-plants-saved-from-closing-under-new-gm-uaw-agreement/http://www.autoblog.com/2009/05/30/report-two-plants-saved-from-closing-under-new-gm-uaw-agreement/#commentsFiled under: , , , ,



According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23% of its GM export production (has anyone told CAW head Ken Lewenza yet?) while Asian importation climbs 98%.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]

REPORT: Two plants saved from closing under new GM/UAW agreement originally appeared on Autoblog on Sat, 30 May 2009 14:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>assemblyassembly plantAssemblyPlantcanadacawchinageneral motorsGeneralMotorsgmmanufacturingmexicoplantsstampingstamping plantStampingPlantuawunionunionsSat, 30 May 2009 14:05:00 EST<![CDATA[REPORT: GM reaches deal with Canadian Auto Workers union]]>http://www.autoblog.com/2009/05/22/report-gm-reaches-deal-with-canadian-auto-workers-union/http://www.autoblog.com/2009/05/22/report-gm-reaches-deal-with-canadian-auto-workers-union/http://www.autoblog.com/2009/05/22/report-gm-reaches-deal-with-canadian-auto-workers-union/#commentsFiled under: , ,

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.

Permalink | Email this | Comments]]>canadian auto workersCanadianAutoWorkerscawgeneral motorsGeneralMotorsgmgm bailoutgm bankruptcyGmBailoutGmBankruptcyKen LewenzaKenLewenzauawFri, 22 May 2009 15:58:00 EST<![CDATA[BREAKING: GM and UAW reach tentative agreement over new contract, bankruptcy looms regardless]]>http://www.autoblog.com/2009/05/21/breaking-gm-and-uaw-reach-tentative-agreement-over-new-contract/http://www.autoblog.com/2009/05/21/breaking-gm-and-uaw-reach-tentative-agreement-over-new-contract/http://www.autoblog.com/2009/05/21/breaking-gm-and-uaw-reach-tentative-agreement-over-new-contract/#commentsFiled under: , ,



Though we were just warned that new deals between General Motors and the major auto unions in the U.S. and Canada were unlikely to be completed by their May 27 deadline, word has begun spreading that a tentative agreement has been reached between GM and the United Auto Workers union. While there's no word yet on a deal having been reached between GM and the Canadian Auto Workers union, the major obstacle of convincing the UAW to accept equity in the company in exchange for cash payments to its retiree health care fund appears to have been overcome, pending an official announcement from both parties and a vote by the UAW rank-and-file membership.

Like the deal recently reached by the union and bankrupt Chrysler, the UAW would get a 38% stake of GM for the purposes of funding its VEBA retiree health care trust. Also like its deal with Chrysler, the UAW presumably would not have a controlling interest in GM and sell off its stake as soon as the company was viable.

If true, only two major obstacles remain to avoid a bankruptcy filing before GM's government-imposed June 1 deadline. The first is getting CAW to follow the UAW's lead and sign a new agreement, and the second is to get the majority of GM bondholders to accept a debt-for-equity swap that would erase $27 billion of the automaker's debt but leave creditors with only a 10% stake in the company. The UAW would have its proposed 38% stake, common GM shareholders would hold a 1% stake and the U.S. government would have a majority stake of 51%. Its creditors, however, do not appear willing to accept GM's debt-for-equity offer as it stands, so unless a miracle happens in the next two weeks, a Chrysler-like Chapter 11 bankruptcy filing still appears the most likely result.

[Source: CNN Money, Photo by Bill Pugliano/Getty]

BREAKING: GM and UAW reach tentative agreement over new contract, bankruptcy looms regardless originally appeared on Autoblog on Thu, 21 May 2009 13:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bankruptcybreakingcawgeneral motorsGeneralMotorsgmgm bankruptcygm uawgm uaw agreementGmBankruptcyGmUawGmUawAgreementuawThu, 21 May 2009 13:58:00 EST<![CDATA[GM warns UAW and Treasury deals won't be done in time]]>http://www.autoblog.com/2009/05/21/gm-warns-uaw-and-treasury-deals-wont-be-done-in-time/http://www.autoblog.com/2009/05/21/gm-warns-uaw-and-treasury-deals-wont-be-done-in-time/http://www.autoblog.com/2009/05/21/gm-warns-uaw-and-treasury-deals-wont-be-done-in-time/#commentsFiled under: , , , ,



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.

Read | Permalink | Email this | Comments]]>canadian auto workersCanadianAutoWorkerscawgeneral motorsgeneral motors bankruptgeneral motors bankruptcyGeneralMotorsGeneralMotorsBankruptGeneralMotorsBankruptcygmgm bankruptgm bankruptcyGmBankruptGmBankruptcyuawunited auto workersUnitedAutoWorkersThu, 21 May 2009 08:33:00 EST<![CDATA[Fiat CEO Marchionne: "If I was a betting man, I would suggest Chrysler is going to fall into Chapter 11"]]>http://www.autoblog.com/2009/04/29/fiat-ceo-if-i-was-a-betting-man-i-would-suggest-chrysler-is-g/http://www.autoblog.com/2009/04/29/fiat-ceo-if-i-was-a-betting-man-i-would-suggest-chrysler-is-g/http://www.autoblog.com/2009/04/29/fiat-ceo-if-i-was-a-betting-man-i-would-suggest-chrysler-is-g/#commentsFiled under: , , ,



After yesterday's Chrysler news regarding the first-lien holders and the U.S. Treasury coming to terms, we hope none of you thought the Pentastar had gotten off the see-saw. The latest tidbit comes from Fiat CEO Sergio Marchionne, but it comes via CAW head Ken Lewenza. According to Lewenza, Marchionne said that with two days left before Chrysler's got to show viability or go under, that "regardless of all the bondholders and stakeholders coming to the pump," if Marchionne had to put his money on the outcome he "would suggest Chrysler is going to fall into Chapter 11."

Also according to Lewenza, Marchionne also said "the Canadian plants are about as well positioned as you could possibly be,"so who knows, this could be Lewenza taking a dig at Chrysler and engaging in a little self promotion. Now we only have to wait and see if Fiat issues a 'clarification' of what Marchionne is reported to have said. For while Fiat isn't expected to put any money in for its potential stake in Chrysler, it is still being looked at as a possible savior, and those aren't the kinds of sentiments you want to hear from the person leading the cavalry moments before the battle is decided.

[Source: Auto News, sub req'd | Image: Giuseppe Cacace/Getty]

Fiat CEO Marchionne: "If I was a betting man, I would suggest Chrysler is going to fall into Chapter 11" originally appeared on Autoblog on Wed, 29 Apr 2009 16:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cawchapter 11Chapter11chryslerchrysler bankruptcyChryslerBankruptcyearningsfiatfinancialsgovernmentken lewenzaKenLewenzasergio marchionneSergioMarchionneunionsWed, 29 Apr 2009 16:57:00 EST<![CDATA[Let's Make a Deal: Chrysler, Canadian Auto Workers agree on union concessions]]>http://www.autoblog.com/2009/04/25/lets-make-a-deal-chrysler-canadian-auto-workers-agree-on-unio/http://www.autoblog.com/2009/04/25/lets-make-a-deal-chrysler-canadian-auto-workers-agree-on-unio/http://www.autoblog.com/2009/04/25/lets-make-a-deal-chrysler-canadian-auto-workers-agree-on-unio/#commentsFiled under: , , ,



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.

Read | Permalink | Email this | Comments]]>bankruptcybreakingcanadian auto workersCanadianAutoWorkerscawchryslerconcessionsdealfiatreorganizationSat, 25 Apr 2009 10:22:00 EST<![CDATA[CAW President Lewenza issues address responding to Nardelli/Lasorda letter]]>http://www.autoblog.com/2009/04/20/caw-president-lewenza-issues-address-responding-to-nardelli-laso/http://www.autoblog.com/2009/04/20/caw-president-lewenza-issues-address-responding-to-nardelli-laso/http://www.autoblog.com/2009/04/20/caw-president-lewenza-issues-address-responding-to-nardelli-laso/#commentsFiled under: , , ,



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.

Read | Permalink | Email this | Comments]]>bailoutcanadaCanadian Auto WorkersCanadianAutoWorkerscawchryslerken lewenzaKenLewenzalewenzamanufacturingunionunionsMon, 20 Apr 2009 16:58:00 EST<![CDATA[Chrysler brass sends letter asking CAW workers for concessions. Workers burn it. ]]>http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/http://www.autoblog.com/2009/04/18/chrysler-brass-sends-caw-workers-letter-requesting-concessions/#commentsFiled under: , , , ,



It boils down to this: In 12 days, Chrysler's fate is likely to be sealed, one way or another. Both the United States and Canadian federal governments have told the automaker that in order to get continued funding, it must restructure dramatically. After consulting with his task force on the auto industry, President Obama made it abundantly clear at the end of March that this meant a Fiat deal needed to be in place within 30 days, otherwise it's basically curtains for Chrysler as we all know it. Without the inter-continental partnership, bankruptcy is a lock. It's just a matter of which number follows the letter C.

Complicating matters further for Auburn Hills is the fact that the Fiat deal is by no means guaranteed, either. This week, Fiat CEO Sergio Marchionne said that taking a stake in Chrysler is only a 50-50 proposition right now, and that for a deal to happen, Chrysler's labor costs would need to be cut down to a point where they're in line with the Asian and European transplant automakers, who happen to run non-union shops. With the April 30th deadline hanging over Bob Nardelli and co. like the Sword of Damocles, the Chrysler execs made a plea for concessions from the Canadian Auto Workers via a letter delivered yesterday. These include cost-saving reductions in health and prescription coverage, the elimination of life insurance, and the elimination of other "non-traditional" benefits such as tuition reimbursement, among other things. (A copy of the letter is pasted after the jump.) The letter also includes dire language that essentially states the concessions are required for the company's survival.

The Windsor Star reports that the letter was not well received by some CAW workers at the Windsor, Ontario assembly plant, who responded to it by gathering outside at lunch hour on Friday, whereupon they proceeded to burn the letters during an impromptu rally. And so the stage is set for what are sure to be contentious negotiations between Chrysler and union brass, which are set to begin on Monday. As Bob Nardelli and Tom LaSorda said in their letter to the CAW rank-and-file: "The clock is running."

[Source: The Windsor Star]

Continue reading Chrysler brass sends letter asking CAW workers for concessions. Workers burn it.

Chrysler brass sends letter asking CAW workers for concessions. Workers burn it. originally appeared on Autoblog on Sat, 18 Apr 2009 09:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutcawchryslerconcessionsreorganizationrestructuringSat, 18 Apr 2009 09:51:00 EST<![CDATA[REPORT: Fiat's Marchionne says Chrysler deal odds are 50-50; warns unions to cut costs]]>http://www.autoblog.com/2009/04/15/report-fiats-marchionne-says-chrysler-deal-odds-are-50-50-war/http://www.autoblog.com/2009/04/15/report-fiats-marchionne-says-chrysler-deal-odds-are-50-50-war/http://www.autoblog.com/2009/04/15/report-fiats-marchionne-says-chrysler-deal-odds-are-50-50-war/#commentsFiled under: , , , ,



With the clock ticking down on Chrysler's restructuring deadline from the Obama administration, Fiat's CEO, Sergio Marchionne is getting blunt: Cut costs, or else.

According to Reuters, unless the United Auto Workers and Canadian Auto Workers agree to cut labor costs within the two weeks leading up to the April 30 deadline, Fiat will pull out from its planned stake in Chrysler, all but assuring bankruptcy for the Auburn Hills automaker. In fact, in an interview with Canada's Globe and Mail, Marchionne estimated that the chances for a deal are only 50-50, saying "Absolutely we are prepared to walk. There is no doubt in my mind." Thus far, union representatives have been resistant to lowering labor rates to be more in line with that of Asian and European automakers.

In addition to labor cost issues, Chrysler has massive debt to contend with - some $7 billion is owed to lenders. If the company is to have any hope of making a dent in those obligations without seeking bankruptcy protection, it will need the to secure the second $6B tranche in government loans (it has already taken in $4B) that the White House says will only be offered if they come to terms on restructuring.

On the subject of the possibility of simply 'cherry-picking' from the bin of for-sale brands in the States as a way to re-gain entry into North America, Marchionne has reportedly been dismissive - particular of General Motors' Saturn division, about which he remarked: "It's not a brand I have any affinity for."

[Sources: Reuters; Automotive News (subs req.) | Image: AFP/Getty]

REPORT: Fiat's Marchionne says Chrysler deal odds are 50-50; warns unions to cut costs originally appeared on Autoblog on Wed, 15 Apr 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>breakingbreaking newsBreakingNewsCAWChryslerFiatlabor costsLaborCostsMarchionneobama administrationObamaAdministrationSergio MarchionneSergioMarchionnetrancheUAWunionWed, 15 Apr 2009 10:00:00 EST<![CDATA[Tuesday deadline for Chrysler Canada to make CAW deal]]>http://www.autoblog.com/2009/03/29/canadian-govt-sets-tuesday-deadline-for-chrysler-to-make-caw-de/http://www.autoblog.com/2009/03/29/canadian-govt-sets-tuesday-deadline-for-chrysler-to-make-caw-de/http://www.autoblog.com/2009/03/29/canadian-govt-sets-tuesday-deadline-for-chrysler-to-make-caw-de/#commentsFiled under: , , , ,



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.

Read | Permalink | Email this | Comments]]>canadacanadian auto workersCanadianAutoWorkerscawchryslerchrysler canadaChryslerCanadamanufacturingnegotiationsontarioplantstorontounionunionsSun, 29 Mar 2009 16:15:00 EST<![CDATA[Worker standoff at Chrysler supplier plant ends]]>http://www.autoblog.com/2009/03/20/worker-standoff-at-chrysler-supplier-plant-over/http://www.autoblog.com/2009/03/20/worker-standoff-at-chrysler-supplier-plant-over/http://www.autoblog.com/2009/03/20/worker-standoff-at-chrysler-supplier-plant-over/#commentsFiled under: , , ,



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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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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GM just ratified an agreement with the Canadian Auto Workers union, and as soon as it did, Chrysler blasted it for being "weak." Chrysler's complaint was that the CAW didn't offer enough concessions to bring production costs into line with market realities. Now Ford has piped up in Chrysler's corner, saying "We believe the recently negotiated agreement between General Motors Canada and the Canadian Auto Workers will not keep Ford's Canadian operations competitive in today's global economy."

Ford's Canadian labor costs per hour are supposed to be $70 Canadian, about $55 in U.S. dollars. Even though that is the amount that Ford recently just got its American labor costs down to, the company says it will need more savings from up north. GM, which hailed the agreement as promising, hasn't commented on its competitors' assessments, and neither has the CAW.

[Source: Auto News, sub req'd]

Rally 'round the family: Ford backs up Chrysler's "weak" assessment of new CAW contract originally appeared on Autoblog on Sat, 14 Mar 2009 12:32:00 EST. Please see our terms for use of feeds.

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The Canadian Auto Workers union has ratified a new contract with General Motors that should help substantially reduce the automaker's operating costs in Canada. The template of the agreement is very similar to the one reached here in the U.S. between Ford and the UAW recently.

CAW said 87% of its GM workers voted to accept frozen wages, paying more for health care and losing some paid time off, among other rollbacks. However, the cuts won't take effect until Canada's government finalizes and distributes aid money to General Motors. The U.S. automaker has asked the Canadian government and province of Ontario for up to C$7 billion ($5.4 billion) in loans.

UPDATE: GM's official statement included after the jump.

[Source: Automotive News, sub. req'd]

Continue reading GM Canada workers approve contract concessions

GM Canada workers approve contract concessions originally appeared on Autoblog on Thu, 12 Mar 2009 12:59:00 EST. Please see our terms for use of feeds.

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Ontario, Canada has been hit hard by the crash of the automotive market. The region's once healthy automotive plants are being hit with shift reductions and plant closures, while the remaining union workers are seeing benefits and wages slashed, all the while insurance premiums increase. Given the massive loss of jobs, deputy premier George Smitherman is a more than a little upset that the Ontario Lottery decided on a Mercedes Benz as its prize of choice. Smitherman called lottery executives' decision to give away 22 Mercedes in its new promotion a "crappy decision" and a "lapse of judgment."

The Ontario Lottery is giving away the luxury automobiles in an April promotion at Ontario casinos. Lottery officials state that the contest was conceived 10 months ago, well before the floor fell out from under auto sales. Due to the negative attention, the OLG has put the promotion under review but stopped short of saying it would replace the vehicles. With the Ontario-built 2010 Camaro hitting regular production just two weeks before the drawing, we could think of one very good replacement prize.

[Source: CBC]

Ontario Lotto apologizes for giving away imported cars originally appeared on Autoblog on Thu, 12 Mar 2009 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CAWontario lotteryOntarioLotteryplant closuresPlantClosuresThu, 12 Mar 2009 09:59:00 EST<![CDATA[CAW concessions could pave way for Canadian GM bailout]]>http://www.autoblog.com/2009/03/08/caw-concessions-could-pave-way-for-canadian-gm-bailout/http://www.autoblog.com/2009/03/08/caw-concessions-could-pave-way-for-canadian-gm-bailout/http://www.autoblog.com/2009/03/08/caw-concessions-could-pave-way-for-canadian-gm-bailout/#commentsFiled under: ,

Reuters reports that the Canadian Auto Workers leadership and General Motors Canada have agreed on a set of union concessions that, if approved by CAW members, could clear the way for both the Canadian federal and Ontario local governments to furnish the cash-starved automaker with billions more in bailout dollars. According to Reuters, the union has agreed to swallow a wage freeze through 2012, reduced vacation time, and higher co-pays on their benefits plans. These changes would come on top of proposed pay reductions for both executives and regular salaried workers, plus benefits cuts for the latter.

GM hopes that the combined white-and blue-collar savings will be enough to convince Canadian officials to open up the coffers. For its part, the CAW says it'll use the GM negotiations as a model for how it'll deal with the other automakers seeking similar concessions. The Canadian developments come after a week in which the big story was GM's auditors' gloomy outlook on the company's ability to contintinue as a going concern. Stay tuned for another active news cycle this week as President Obama's auto industry task force heads to Detroit for powwows with automaker and union leaders. Everyone is in scramble mode right now because both GM and Chrysler need more money by the end of this month in order to keep the lights on. Thanks to Jarrett for the tip!

[Source: Reuters]

CAW concessions could pave way for Canadian GM bailout originally appeared on Autoblog on Sun, 08 Mar 2009 17:33:00 EST. Please see our terms for use of feeds.

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Detroit automakers are frantically working to cut costs in an effort to stay out of bankruptcy court. A very big piece of the puzzle is labor, and leaders from the Canadian Auto Workers Union are reportedly ready and willing to make concessions. Talks are set to begin next week in advance of a February 17 deadline for the Detroit automakers to submit their viability plans to the Canadian government. The CAW would like to exchange wage concessions in return for job guarantees.

With the CAW and Detroit heading for discussions to cut wages and benefits, there are bound to be some unhappy workers. CAW president Ken Lewenza sums it up best by saying, "Labor costs clearly did not cause this worldwide crisis in the auto industry and labor concessions cannot possibly solve that crisis." Perhaps, but changes must be made in order for Detroit to become competitive verses its foreign competition.

The CAW received a big scare last week when GM turned down $3 billion in loans from the Canadian government. The move could have meant that the General was focusing on US factories, where the UAW has shown some openness to benefit concessions. GM of Canada did mention that it was instead focusing on short-term cash preservation in lieu of additional loans, but that it could pursue the loans at a later date.

[Source: BNN]

CAW ready to talk with Detroit 3 before gov't deadline, willing to deal originally appeared on Autoblog on Sat, 31 Jan 2009 13:04:00 EST. Please see our terms for use of feeds.

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