Canada auto workers union refuses further concessions to Chrysler

• Source: Xinhua
• [10:46 April 16 2009]
• Comments

The Canadian Auto Workers Union on Wednesday refused to make any special concessions for automaker Chrysler, despite a threat that Fiat could walk away from a possible partnership to save the ailing company.

Fiat wants the unions in Canada and the United States to agree to match the lower wages at Japanese and German car plants as a precondition for the partnership. The U.S. government has given Chrysler until the end of April to negotiate a partnership with Fiat, or face the prospect of a bankruptcy filing or liquidation.

Canadian Auto Workers president Ken Lewenza said Wednesday his union would bargain with Chrysler for a deal similar to the one struck with General Motors earlier in the year.

The GM agreement was worth approximately 7 Canadian dollars (5.6 U. S. dollars) a hour in reduced labour costs. Chrysler, however, said it needs savings in the range of 20 Canadian dollars (16 U.S. dollars) an hour to stay in business.

Lewenza said that giving Chrysler a better deal would end up hurting GM. Historically, the Canadian Auto Workers Union makes somewhat similar deals with the three U. S. automakers, a pattern that keeps sector labor costs equal.

The Canadian branches of the three U. S. giant automakers make up 20 percent of the total North American auto production.