"Dangerous Innuendo" Looms Over Labor Talks

Edward Niedermeyer
by Edward Niedermeyer

“Dangerous innuendo” is CAW Prez Ken Lawenza’s sultry summary of Chrysler’s plan to interruptus its Canadian operations if labor won’t agree to further concessions, reports Bloomberg. Chrysler is holding out for wage and benefit concessions that are “considerably larger” than those given to GM. The current GM agreement, when applied to Chrysler, cuts just $7.25 an hour Canadian from the company’s labor costs, according to a document obtained by Bloomberg. The same document reportedly shows that Chrysler requires $11.75 Canadian an hour in additional savings to be competitive. Meanwhile, Automotive News [sub] reports that GM is playing a similar game in its UAW negotiations. CEO Rick Wagoner says Ford’s agreement with the UAW “does not meet our needs” and that GM is working with the UAW to “do something different.” But despite the bloodthirsty negotiations, all three Detroit automakers are standing by their union allies in DC and on the pages of the Freep, calling for an American cash-for-clunker program. Because, hey, even Malaysia is doing it, according to Ward’s [sub].

Edward Niedermeyer
Edward Niedermeyer

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  • CommanderFish CommanderFish on Mar 17, 2009

    In the event that concessions aren't made, it would be super easy to pull the minivans out of Windsor. There's an identical plant that I believe has the new 2008 minivan tooling sitting mothballed in St. Louis. Brampton and the LX cars (300/Charger/Challenger/soon 200, yes it's confirmed as of earlier tonight) might be a different story.

  • DamonK DamonK on Mar 17, 2009

    Huh, I thought that the lower cost of operation in Canada was the draw, a.k.a. "no healthcare costs." The loony has weakened considerably since last summer, too (it only takes $.76 to pay for 1 Canadian buck), and they STILL can't make it? I gotta say it: "Chrysler...deserves...death."

  • Hazard Hazard on Mar 18, 2009

    Exactly damonK, I believe making cars in Canada is cheaper for Chrysler than doing so in the states. They'd be crazy to pull out. In fact, if they have any sense, they should pull out of the USA - not Canada. In Canada they're the #1 automaker (or were in Jan/Feb?). In the US they're dead. Chrysler survival strategy: 1) Beg Canadian and Ontarian governments for cash 2) Transfer all relevant IP and resources to Chrysler Canada - paid for with said cash 3) Sell majority stake of Chrysler Canada to Magna 4) Let Chrysler LLC of Detroit, USA go to Chapter 7 It's a win-win-win: Chrysler goes to where it has lower costs and bigger market share; Canada gets a truly domestic automaker the government will throw cash onto; and Chrysler can still export to the USA due to NAFTA. Then they can start assembling Fiats for all the ginos in Woodbridge. And pink convertible 500s with cutesy shiny rims for the ginas. Throw in some free Kappa wear with the cars and you'll have sales. :)

  • Geo. Levecque Geo. Levecque on Mar 18, 2009

    The feeling of many Taxpayers here in Canada are saying let them go, wherever, probably Mexico! It would be better they go tits up imho! Last evening I was watching a program on Gasoline Prices, the author said a Barrel of Petrol should be between $400 and $600 dollars! Just like the cost is in Europe, not sure about Europe but I know that Petrol costs a arm and a leg in the United Kingdom as compared to NA prices. If the price goes up in the not too distance future, you will see the price of the Canadian dollar increase to Par or above, and despite what the National Geographic said about our Oil Sands project, anywhere they produce Petrol products there is a cost to the enviorment. Canada still produces the most Oil for the USA economy, its safer than shipping a Barrel from the Mid East I would think. The author also said that the Mexico Oil fields are just about exhausted and after this year they wont be exporting any Petrol to the USA! Food for thought eh? a

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