The Canadian Auto Workers on Thursday appeared to be inching closer to a concession deal with Chrysler LLC the automaker needs if it is to complete its partnership with Fiat SpA and avoid a bankruptcy filing.
Ontario Economic Development Minister Michael Bryant
told reporters that he believes progress has been made in contentious talks between the union and Chrysler, which is seeking to shave C$19 ($15.50) off of employees C$76 hourly total compensation figure. Chrysler needs concessions from unions and other stakeholders by the end of the month if it is to complete its deal with Fiat and qualify for additional government support to fund its restructuring. A source close to the company was optimistic that a deal could be announced late Thursday or early Friday.
The Canadian union, which represents about 8,000 Chrysler workers in the country, is seen as the automaker's primary labor roadblock. Chrysler must still finalize a concession deal with its United Auto Workers union in the U.S. and reach an agreement with lenders to erase much of its $6.8 billion in debt.
Negotiations with the lenders, which are being conducted in consultation with the U.S. Treasury, could continue until the April 30 deadline as the banks and hedge funds holding the debt weigh the value offered in a concession deal against what they are likely to receive if they force Chrysler to liquidate. -
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