A Canadian Auto Workers union leader said Friday the group remains "far apart" in negotiations with Chrysler LLC over a concession deal that would keep the troubled automaker from leaving the country.
The two sides opened talks this week, with Chrysler seeking to shave about C$20 ($16) an hour off of total wage and benefit costs. The Cerberus Capital Management LP-owned automaker has reportedly formulated plans to pull its manufacturing operations out of Canada if it can't get the savings it needs plus upwards of $2.3 billion in loans and tax breaks from Canadian governments.
CAW president Ken Lewenza
told reporters Friday that the two sides so far have failed to come to an agreement, but intend to keep talking at least through March 31.
Chrysler along with crosstown rival General Motors Corp. (NYSE:GM) is expected to win new funding from the U.S. government in the days to come, but the automakers still need to secure concessions from stakeholders to ensure that the government funding spigot is not eventually turned off. -
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