Canadian Auto Workers
and Chrysler Group LLC engaged in constructive talks on new contract on Friday,
as told by the head of the union. However, the discussion remained apart with
the automaker complaining that the template deal with the union was expensive.
Chrysler is the only
Detroit Three auto manufacturer that does not have a contract in Canada after
the union has reached a four-year tentative deal with General Motors
Company(NYSE:GM) overnight following the agreement on Monday with Ford Motor
Company(NYSE:F).
The Ford deal set the
union’s bargaining prototype with other two companies and Ford workers will
vote on it this weekend.
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CAW National President
Ken Lewenza said that the company has constructive discussions with Chrysler.
Pattern bargaining is a
tradition of the CAW under which the first deal reached negotiations with the
automakers become the template for deals with other two. It is designed to make
sure that no company has a labor cost benefit over the others.
Lewenza mentioned in an
interview that Chrysler is still saying that the pattern is expensive. CAW is
still discussing whether or not to tweak it. Lewenza hopes they can come up
with something creative.
The union represents
about 20,000 workers at the Detroit Three. It has asked Chrysler for a written
proposal in reply to the Ford deal.
Discussions with
Chrysler at the master bargaining level involve Lewenza. This is likely to slow
over the weekend as the senior CAW officials will travel to Ford’s plants that
are located in southern Ontario. Workers there will vote on their contract.
Discussions at the
sub-committee level are supposed to continue over the weekend at a downtown
Toronto hotel. Talks have happened for more than a month. Lewenza said that he
had hopes of getting a deal at the starting of next week, Peter Kennedy, CAW
secretary- treasurer said that he would be happy if CAW can wrap this issue by
Monday.
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