CAW ratifies Chrysler deal

[Bozita]

Source: Detroit News

Sunday, April 26, 2009
CAW ratifies Chrysler deal
Alisa Priddle / The Detroit News


Members of the Canadian Auto Workers union ratified a new deal with Chrysler LLC over the weekend that becomes the first of many outstanding agreements with stakeholders to be resolved by the automaker before Thursday's deadline.

April 30 is when the governments of the U.S. and Canada will decide whether Chrysler qualifies for billions in additional loans. Without the aid, the automaker will have to file for bankruptcy protection.

CAW members voted 87 percent for the agreement that introduces cuts to benefits, reductions in legacy costs and productivity improvements amounting to C$240 million a year in aggregate savings, said union president Ken Lewenza.

"Our members understand better than anyone the current turmoil of the domestic auto industry," Lewenza said in announcing the vote results Sunday night.

Read more: http://www.detnews.com/article/20090426/AUTO01/904260354/1361/CAW+ratifies+Chrysler+deal

[CHIMO]

1. Trying

To breathe life into a waning patient.

It may at least give Ford and GM a better chance of surviving.

Canadian workers at Chrysler vote to accept labour concessions

The CAW will now negotiate similar deals with Ford and GM to maintain fairness and competitiveness among the Detroit Three automakers.

http://www.wheels.ca/reviews/article/540496

Chrysler Canada wants the money and no strings.

Chrysler hints at leaving Canada

OTTAWA - The head of Chrysler issued a grim threat to Canadian lawmakers Wednesday night, warning the struggling automaker may shut down its plants in Canada if it doesn't get significant labour concessions and government aid.

"Chrysler LLC cannot afford to manufacture products in a jurisdiction that is uncompetitive, relative to other jurisdictions," president Tom LaSorda told a Parliamentary committee.

The automaker also asked for roughly US $2.3 billion dollars from the Canadian and Ontario governments and demanded relief in a tax dispute with Ottawa.

http://www.autonet.ca/autos/news/2009/03/11/8711661-cp.html

Chrysler Canada hit with C$500 million lien: paper
TORONTO (Reuters) - The Canadian government has hit Chrysler <CBS.UL> Canada with a tax-related C$500 million ($400 million) lien that could complicate negotiations for the automaker as it seeks government aid, the Globe and Mail newspaper said on Thursday.
http://finance.sympatico.msn.ca/investing/news/breakingnews/article.aspx?cp-documentid=17947580

CAW ratifies Chrysler deal

None of the Canadian plants are targeted to make Fiat vehicles in the future, said the union chief.

http://www.detnews.com/article/20090426/AUTO01/904260354/1361/CAW+ratifies+Chrysler+deal

Chrysler workers approve deal reached by company, CAW
Lewenza said Chrysler told him it plans to split into two parts if it files for bankruptcy protection: one that will continue to operate with the help of an alliance with Fiat and another that will liquidate its assets.

http://www.cbc.ca/canada/story/2009/04/26/chrysler-canada-workers.html

Reading these articles it seems to me that the CAW is just going through the motions. They either aren't aware of the Fiat US deal or the Canadian politicians haven't been doing their work.

Don't think that Chrysler is going to cough up 500 million from their US corp to satisfy Canadian requirements.

Look for a drawn out slow death on this one.

[Telly Savalas]

2. How many Canadians have the misfortune of having these assholes as their employer?

Wouldn't it be more prudent for the federal government and the government of Ontario to simply tell Nardelli to shove his demands up his ass, and then give a fraction of that $2.3 billion directly to the autoworkers?

[CHIMO]

3. I Believe

It is in the neighbourhood of 10,000.

To put it into a US perspective that would be equivalent to 100,000

On the other hand Chrysler Canada has been quite a good Canadian company in the past. However, things seems to have gone down the rabbit hole. And I think that is in general.

NAFTA, the Auto Pact have gone.

Interesting topic today on Media Matters with Kevin Phillips.
They should have it available later this week.

'Bad Money' by Kevin Phillips
http://www.latimes.com/features/books/la-et-rutten16apr16,0,4337030.story

In 1929 5% of the GDP was in finance. It is now 20%. So manufacturing has disappeared and finance is a leader. Now finance takes a big hit. Where is the cushion?

[Telly Savalas]

4. At 10,000 jobs, Nardelli is demanding $230,000 per job.

So it's not really clear that funneling this money through the inept management of Chrysler is the best way of helping the workers, especially considering that there's a reasonable chance that Chrysler will collapse even with that money.

With regards to your last statement -- a large chunk of that 5% to 20% increase happened in the last decade or so. The events of the last year have made it clear that this increase in the size of the financial sector wasn't associated with added value, but rather was parasitic in nature. So right now the economy is correcting itself. However, without government intervention to guide this correction unemployment could very well reach 25% before things start getting better. I'm not really sure what the best course of action is though.