C.A.W, Chrysler Reach Agreement
Pensions, Wages Left Untouched
The Canadian Autoworkers Union (CAW) has been pressured by Chrysler, and government officials to accept cost cuts as part of a restructuring plan in order to qualify for more government funds.
Benefits Cut, Fiat Partnership Moves Closer
The cost cuts were achieved by cutting benefits. Chrysler’s President Bob Nardelli, and Canadian CEO Tom Lasorda recently sent a letter to employees suggesting cuts to health benefits including the elimination of semi-private hospital coverage, and raising health-care premiums. Additionally the union agreed to the elimination of the employee-car purchase plan, and tuition credits, as well as the reduction in paid relief time to 40 minutes a day.
In remarks published on ctv.ca C.A.W President Ken Lewenza agreed it meets the federal government’s requirement: “This agreement meets the benchmark that was set by the federal government to guide our bargaining.” In the same article Chrysler’s Chief Bargainer Al Iacobelli gave credit to the union’s negotiating team: “The CAW leadership worked around the clock for its membership to hammer out details during an extremely complex negotiation.”
In remarks published oncbc.ca, federal Finance Minister Jim Flaherty called the cost-cutting agreement a positive sign: “We all agreed back in December to see this through, assuming they had a viable plan going forward and it looks like they’ve accomplished that.” As recently as April 18th, the federal government said if the union was unable to make a deal the promise of additional aid to help the failing automaker would be withdrawn.
The agreement sees Chrysler save up to $240 million/year; breaking down to the requested $19/hr in cuts. It fulfills a commitment to Fiat to cut costs as part of a possible technology-sharing agreement that would see the Italian automaker take a 20% interest in the company.
Membership Reacts To Deal
The union's Chrysler employees are voting on the deal this weekend (April 25th, and 26th) with results expected either sometime April 26th or Monday April 27th.
The agreement has stirred some negative reaction but most employees understand the union needed to make concessions. In remarks published on cbc.ca workers leaving a ratification meeting told the network they realized the union either made concessions or they had no jobs: “If we don’t do this thing we might lose the job and Chrysler might move from here, so we have no choice.”
Lewenza is confident his members will accept the new deal. In remarks published on cbc.ca he said his union had given what they could: “The labour movement did what they could do and now we’re done. We have accepted responsibility and we’re done.”
Because of pattern bargaining the same agreement reached with Chrysler will be offered to Ford and General Motors.
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