With the CAW’s strike deadline just four days away, the union has apparently tabled a proposal to reduce wages for new hires, a move that would stop short of a true two-tier wage system, but meet a major demand of the Big Three auto makers.
For all the rhetoric being passed back and forth between the OEMs and the CAW in this round of contract negotiations, the overwhelming feeling from our commenters is that there will be no strike, compromise will be had, and somehow, both sides will play it off as a victory. The latest bulletin from the CAW seems to support that notion.
With the CAW’s strike deadline looming, Chrysler CEO Sergio Marchionne is taking a harder line in the media, pushing his vision of a profit-sharing agreement between Chrysler and the CAW, while boldly stating what everyone knows, but is afraid to say; auto makers have “other options” when it comes to building cars.
Conventional wisdom would have it that the CAW is looking to ensure the future of Ford’s Oakville plant. The Flex and Edge are built at the facility, and there has been a heated debate over whether the government of Ontario should invest money into the plant to help secure new product. But according to the CAW, the number one priority for them is a few hundred miles down the road.
The CAW may abandon their tactic of using negotiations with one automaker as a precedent for other negotiations, and conduct simultaneous talks with Ford, Chrysler and General Motors.
Members of the Canadian Auto Workers union have voted overwhelmingly in favor of a strike mandate as talks between the union and the Big Three resumed today.
Chrysler is coming off a strong year sales-wise, but negotiations with the Canadian Auto Workers will force the company to make a tactical decision; should Chrysler take a tough line in an effort to reduce costs, or look for a quick settlement in order to hold off a strike, maintaining their sales hot streak.
The Canadian Auto Workers union is expected to target Chrysler in the event of a strike, but will reportedly wait until Labor Day before taking action.
The Canadian Auto Workers and the Big Three have kicked off labor talks, with the CAW taking a hard line against concessions – a position that some say, could lead to a lack of future in investment in Canadian auto manufacturing.
With 25 percent of its manufacturing capabilities in Canada, Chrysler would be hardest hit in the event of a strike by the Canadian Auto Workers union.
Calling Canada “the most expensive place in the world to build a car right now“, Dan Akerson threw his hat into the “hourly wage costs need to come down” ring at GM’s annual shareholders meeting on Tuesday.