Chrysler reaches deal with CAW

[CHIMO]

Source: Thestar

Chrysler and its union have broken historical pattern bargaining in the auto industry with a tentative deal for deep worker concessions to help keep the teetering company alive here.

In around-the-clock, high-stakes bargaining, negotiators agreed on a deal Friday night for much more concessions than what workers accepted at General Motors, another reeling automaker, last month.

Ken Lewenza, president of the Canadian Auto Workers, also revealed if Chrysler slips into bankruptcy court protection in the U.S. and Canada, operations here would not be liquidated and remain among the company's "good" operating assets. Workers would also not face further concessions if there is a bankruptcy, he said.

Lewenza, who described the negotiations as "torturous and unfair," said the deal would lead to about $240 million in annual savings for the company but not reduce wages and pensions.



Read more: http://www.wheels.ca/reviews/article/539756

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Treasury makes offer to Chrysler lenders

NEW YORK — The Treasury Department has made a new offer to Chrysler LLC's lenders, asking banks and hedge funds that hold $6.9 billion in debt to forgive $5.4 billion and take a 5-per-cent stake in a Chrysler-Fiat alliance, according to two people familiar with the matter.

The equity stake would go to first-lien lenders including Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and several smaller banks, plus some hedge funds. Chrysler has about 45 such lenders who would be first in line to get money if the company's assets were liquidated.

Including the secured debt and government loans, Chrysler owes about $23.5 billion, including $10.6 billion to a United Auto Workers trust fund that will take over retiree health care costs starting next year. It also owes $1 billion each to its owners, Cerberus Capital Management LP and Daimler AG.

The company is negotiating with the UAW to take equity for part of the trust fund obligation, as well as other concessions. But bankruptcy experts have said secured debtholders won't likely settle for pennies on the dollar because their loans are secured by Chrysler's physical assets, and because they likely purchased credit default insurance that would repay them if Chrysler defaults.

[PNutt]

1. Pretty Easy To Force Consessions........

On healthcare benefits to a bunch of Canadians with nationized healthcare. I had an exgirlfriend who's dad worked for Chrysler in Detroit, but lived across the border for the healthcare benefits and the availability of drugs over the counter. Lot's of autoworkers do that very thing. Detroit has been taken over by the unruly gangland lifestyle from what I understand.

[fujiyama]

3. I've known others that have done that

I worked at Ford and several were contract employees living in Windsor Ontario, which is across the border from Detroit. It was funny and sad to hear the notions many in Canada have of Detroit (some were asked by friends back home about being scared coming over here everyday and whether they heard gunshots when driving here). I don't blame them though, considering the difference in activity after dark in Detroit vs. Windsor. Detroit is dead, while people actually walk in the streets in Windsor. Then again, Detroit was also rated the most dangerous city in the US.

They almost get the best of both worlds - they get paid American wages (which are generally a bit higher) but have the security of Canadian health care, which won't be lost in case of a job termination.

Overall, I sensed no real desire from my Canadian coworkers to move over here. Instead over here, I still here bullshit about supposed waiting lists in Canada and the perils of "socialized medicine", while 30 million + people have no coverage at all here in the US. I sometimes wonder if people in this country will ever learn.

[liberal N proud]

2. Union concessions is all this whole auto industry crisis is about

As soon as they dump the retirees that the promised benefits to and cut deeply into the current workers benefits and salaries the whole problem will magically go away.

What are the retirees supposed to do? Once the deal is cut to drop them, they will most likely lose much of their pension and all their health care. These are things they did not plan for as they were promised as part of the agreement they had with their former employer.

My father is facing the same fate with another industry who had similar benefits as the auto industry. They have been trying for years to bust these guys and drop their coverage leaving them with nothing.

[AlBrattOnline]

4. union concessions

no matter how large or how many concessions the uaw makes in
support of the failing chrysler auto maker, conservatives and
their redneck ignoramus troops (especially in mississippi)
will continue to blame union workers and union management for
the financial problems created by 8 years of republican party
mis-management.  

[endless october]

5. if i had more money, i'd help Chrysler out

by buying a challenger. those cars are just beautiful.

[WriteDown]

6. Be careful....

You're about to be burned to a crisp by the Prius-or-ride-a-bike crowd.

[endless october]

7. yeah, didn't think of that.

my fantasy is harmless, though, because i don't have the funds and probably won't any time soon. and i walk to do a lot of my errands.

maybe i'll edit my fantasy to include a super efficient vehicle for commuting and a challenger that i drive only rarely. why not, lol?