Chrysler – CAW Deal: "no Immediate Cuts to the Union's Base Wage or Pension Benefits"

Robert Farago
by Robert Farago
chrysler caw deal no immediate cuts to the union s base wage or pension benefits

Once again, we’re looking at a “historic” agreement between Detroit carmakers and their unions that’s not what it appears to be. In other words, window dressing. The Detroit Free Press gives us the skinny on the accord between the Canadian Auto Workers (CAW) and The Presidential Task Force on Automobiles—sorry, “Chrysler management.” And the bottom line is that the CAW is giving up its usual bupkis in exchange for the usual “get out of blame free” card re: the company’s evolution into extinction. “Among the benefits the CAW is giving up are a semi-private hospital room coverage, a $3,500 vacation buyout, tuition reimbursement and employee discounts to buy Chrysler vehicles. There are no immediate cuts to the union’s base wage or pension benefits. But Lewenza did agree to significant work rule changes, including reducing break times for meals and bathroom trips to 40 minutes per shift. Regarding the health care trust fund, Lewenza said there was much work still to do and he did not say when it would be implemented.”

And now, a word from the “whatever is is” department . . .

Acknowledging the April 30 deadline facing Chrysler, Fiat, banks and the UAW in the U.S. to complete a deal or see Chrysler file bankruptcy, Lewenza said, “I encourage those stakeholders to make whatever compromises are neccesary to avoid bankruptcy. We did what we could.”

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  • Esg Esg on Apr 25, 2009

    Let's hope that with the forthcoming GM bankruptcy and Chrysler disappearing, the leaders of Honda and Toyota continue to pump out quality vehicles with excellent reliability. Once again, worker and management greed overturns common sense. I would adjust my way of living for a $20 dollar an hour wage if it would salvage the company from not going away. What is wrong with all of the bozos? It's simple math. Sure, reduce that meal/pee break. That'll help.

  • Golf4me Golf4me on Apr 25, 2009

    Once again Union=Fail. Well, Chrysler=Fail for letting the union get away with this BS. "we did what we could" I'm still laughing. That's OK, they'll all be wondering what happened when they are in the soup line, wishing they had ACTUALLY done what they could. $7 an hour is going to look GOOD to them in a few weeks!

  • Bytor Bytor on Apr 25, 2009

    Quote golf4me: "$7 an hour is going to look GOOD to them in a few weeks!" Why would $7/hour look good? Minimum wage in Ontario is $9.50/hour. Quote JWFisher. "The CAW has Chrysler bent over. Long term, Chrysler needs to get out of Canada." I agree with the Americans calling for Chrysler get out of Canada, yes please go, I would prefer your (US) tax dollars fund the Chrysler basket case, and not mine (Canada). I had hopes that Fiat would just wash their hands of this, but unfortunately it looks like not only do they get Chrysler for free (this is not a merger), the will actually get Billions from the various governments as well.

  • Lutonmoore Lutonmoore on Apr 25, 2009

    I can see US taxpayers getting hosed yet again. Jaysus. But my '06 Dakata keeps plugging along...