You didn't want to cross paths with Canadian Auto Workers President Buzz Hargrove on Monday after he found out that Chrysler had been sold to the private equity firm Cerberus Capital Management. The CAW prez was absolutely livid, pissed even, that the CAW was never consulted, not even informally, about the deal.
Well, Chrysler Corp. CEO Tom LaSorda and Cerberus CEO Stephen Feinberg met with Hargrove today to smooth things over. They guaranteed Hargrove in writing that no Canadian auto worker jobs would be lost as a result of the sale. We think "as a result of the sale" is the key phrase in that sentence, as there are plenty of other reasons one could imagine for reducing a workforce: slow sales, high material costs, etc.
Nevertheless, it appears Cerberus isn't planning to come in and dramatically reduce Chrysler's CAW or UAW workforces. Hargrove sounded particularly pleased that Feinberg seemed to know what he was talking about and expressed his company was in it for the long haul.
[Source: Automotive News, sub. req'd]
Well, Chrysler Corp. CEO Tom LaSorda and Cerberus CEO Stephen Feinberg met with Hargrove today to smooth things over. They guaranteed Hargrove in writing that no Canadian auto worker jobs would be lost as a result of the sale. We think "as a result of the sale" is the key phrase in that sentence, as there are plenty of other reasons one could imagine for reducing a workforce: slow sales, high material costs, etc.
Nevertheless, it appears Cerberus isn't planning to come in and dramatically reduce Chrysler's CAW or UAW workforces. Hargrove sounded particularly pleased that Feinberg seemed to know what he was talking about and expressed his company was in it for the long haul.
[Source: Automotive News, sub. req'd]
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