Canadian Auto Workers, Chrysler Fail To Reach Deal; To Talk More
27 März 2009 - 5:31PM
Dow Jones News
The Canadian Auto Workers union and Chrysler LLC haven't yet
reached a cost-cutting accord, threatening production jobs in the
country.
"Twice we were were within inches of reaching a collective
agreement and in both times the deal was pulled back and the goal
posts were shifted," CAW President Ken Lewenza said. The two sides
will continue negotiations through Tuesday.
Chrysler was hoping to reach a deal before a Tuesday deadline to
submit a report to the U.S. Department of Treasury detailing its
cost-cutting efforts in order to win access to $5 billion in
low-interest loans. The union and auto maker had been in talks
since Monday in Toronto.
Chrysler had no immediate response.
The sticking point is the union's stance to follow pattern
bargaining. It wants an accord that is similar to the deal it
reached with General Motors Corp. (GM) earlier this month. Chrysler
said the deal doesn't address the need to trim the hourly wage and
benefit package in that country.
The CAW said it made offers that would lower those wage
packages.
Chrysler threaten to pull production from Canada if the CAW
didn't agree to cut union worker's compensation by as much as 25%.
The company wants compensation packages - including benefits -
reduced to $45 (C$57) an hour from its current rate of $60, these
people said.
-By Jeff Bennett, Dow Jones Newswires;
Jeff.Bennett@dowjones.com, 248-204-5542