Chrysler reaches deal with Canadian union

Friday, April 24, 2009 at 6:33 PM Posted by Beijing News


US automaker Chrysler reached an agreement on pay and benefits with its unionized Canadian workers, opening the path to financial assistance from the Canadian government, Canada's auto union announced.

Canadian Auto Workers' union President Ken Lewenza said in a televised press conference that he agreed to pay cuts

The agreement shold be approved early next week by the 8,000 unionized workers belonging to CAW.

Chrysler and its suitor, Italy's Fiat, said last week Chrysler's Canadian employees must accept cuts in pay and benefits or risk losing their jobs as Chrysler would shut down its Canadian plants.

Ottawa and Washington also demanded labor concessions as part of a reorganization of Chrysler, in order for it to qualify for a bailout and to return to profitability.

Fiat had said it would walk away from a tie-up with Chrysler if workers' salaries were not brought in line with Japanese and German auto plants in Canada.





Clary

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