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