The Canadian Auto Workers and Chrysler will continue bargaining at least until Tuesday, after failing to reach an agreement on concessions that are required before the Ontario and Canadian governments can approve more than C$2bn in loans and tax incentives.
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Canadian Auto Workers President Ken Lewenza said in an update on Friday morning (EST) he thought he had a tentative agreement twice since Wednesday morning, but that Chrysler officials returned with additional demands for concessions.
“I’m disappointed. We thought we had the framework of an agreement in place, but twice the goal posts shifted,” Lewenza said, according to the Detroit Free Press. “Is it the US Treasury, is it Cerberus, is it the bankers? Are we caught up in other politics in the US?”
Both Chrysler and the CAW face a deadline of midnight 31 March to reach an agreement in order for the company’s loan requests to be approved by the provincial and federal governments.
The paper noted that Chrysler president Tom Lasorda said earlier this month the company needed greater cost reductions than what the CAW agreed to with General Motors. He also said Chrysler would consider closing its two assembly plants in Windsor and Brampton, Ontario. It employs 10,000 people in Canada, including more than 8,000 CAW members.
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By GlobalDataThe CAW’s agreement with GM Canada included concessions that would reduce hourly labour costs by $7.25 over the next three years.
Chrysler has complained of an $80m annual healthcare cost incurred by ‘snowbird’ retirees who spend their winters outside Canada in places such as Florida.
