Chrysler Canada rejects GM-CAW “pattern,” demands even greater concessions

[Hannah Bell]

By Carl Bronski
14 March 2009

Chrysler President Tom LaSorda announced Wednesday evening that the Detroit-based automaker is determined to break the "pattern" concessions contract that the Canadian Auto Workers (CAW) union just negotiated with failing auto giant General Motors.

In testimony before the House of Commons finance committee in Ottawa concerning Chrysler's appeal for $2.3 billion (Cdn) in bailout funds, LaSorda called the GM deal "unacceptable" and threatened that Chrysler might close all of its Canadian-based plants unless the company received much deeper concessions from the CAW than had been surrendered to General Motors. He also demanded favourable government treatment on an ongoing $1 billion dispute over back taxes and that the bailout funds be paid in American rather than Canadian currency.

Currently, Chrysler has 9,400 employees in Canada. Another 26,000 are employed at dealerships across the country. The Chrysler brief to the parliamentary committee stated that including pensioners and workers in the supply chain, over 100,000 Canadians are dependent on the company's continued viability. Analysts have suggested that Chrysler is even more vulnerable to bankruptcy than its General Motors rival.


http://www.wsws.org/articles/2009/mar2009/chry-m14.shtml

[Canuckistanian]

1. Bad news

The CAW usually makes one deal with either Chrysler, GM or Ford and the others accept the basic terms for future agreements.

I suspect that Chrysler and GM are in cahoots on this one. If the CAW makes a bigger concession to Chrysler, then GM will demand a re-negotiation.

It's yet another "race to the bottom" that will end up hurting workers.

[susanna]

2. I agree.

It's a shell game at this point. This is awful. :-(

[StreetKnowledge]

3. Not the time to be hellraising with the CAW, Tom

They are already taking big doses of "it's for the best" with the GM deal. They aren't so stupid that they will negotiate a lower deal, because then GM will come back to them with their hands out again. They aren't dumb, Tom. Take what you can get. And if you really are dumb enough to close the Windsor and Brampton plants, you not only are stupid with regards to labor relations, you will also result in lower quality cars.