Canadian Auto Worker leaders on Monday
expressed confidence that they will be able to negotiate concessions with Chrysler LLC that will prevent the automaker from following through on its threat to pull out of the country.
Chrysler and the CAW head into talks this week aimed at shaving C$20 an hour off of total wage and benefit costs. Owned by Cerberus Capital Management LP, the automaker has said it needs savings beyond what crosstown rival General Motors Corp. has secured in Canada and upwards of $2.3 billion in loans and tax breaks from Canadian governments to sustain operations there, with The Canadian Press reporting last week that
Chrysler has already formulated backup plans should it be forced to abandon its manufacturing operations in Canada.
General Motors earlier this month reached a deal with the CAW that freezes wages, transfers healthcare costs to employees and trims benefits including paid time off and cost of living adjustments. The union has said it hopes to pattern a Chrysler deal on the GM agreement, but Chrysler has warned a similar deal would give it less than half of the hourly concessions it needs.
Chrysler, which is expected to push for more work rule cuts as well as have workers contribute to their pensions, seemingly has the Canadian government on its side. Ottawa has said the Big Three U.S. automakers must reopen labor deals struck last year and bring costs down if they are to qualify for government assistance. --
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