CAW readies members for bankruptcy protection; talks with Chrysler to resume Monday

[Omaha Steve]

http://www.canada.com/business/fp/readies+members+bankruptcy+protection+talks+with+Chrysler+resume+Monday/1512823/story.html

TORONTO -- The Canadian Auto Workers union is warning its members that a bankruptcy protection filing by Chrysler LLC will cause “tremendous harm to workers, retirees and consumers” as it casts the automaker’s big bank lenders as the villains in the unfolding drama.

“Whether GM or Chrysler go into bankruptcy protection is completely beyond our control,” the union says in an information circular distributed to its auto worker members in recent days. “Bankruptcy protection is all about the collapse of auto sales, the brinkmanship of the bondholders and other financial interests, and the failure of governments.”

The warning comes as the CAW prepares to resume bargaining on a new contract with Chrysler on Monday after an acrimonious week during which Chrysler’s senior executives in a letter implored their Canadian factory employees to accept significant concessions. Some workers burned the correspondence.

Washington and Ottawa, which are funding Chrysler’s operations with more than US$4-billion in emergency aid, have given the company until April 30 to wipe out most of its secured debt and strike new labour deals with its two main unions -- the CAW and the U.S.-based United Auto Workers. Without new agreements with the lenders and unions the automaker could be pushed into bankruptcy protection court.

Ken Lewenza, CAW President, has rejected Chrysler’s demand for an all-in labour cost cut of $19 an hour. His senior leadership team is now clearly readying 8,000 CAW members at Chrysler for a bankruptcy protection situation. The union’s circular warns that it’s possible a Canadian bankruptcy judge may allow a company to suspend retiree benefits payouts. It also cautions that in the event an automaker is unable to survive bankruptcy restructuring and is liquidated, pensioners would see their benefits cut back.

FULL story at link.