Chrysler’s Tom LaSorda was very vocal in his meeting with the Canadian government earlier this week saying that the company needs more concessions from the CAW. Chrysler’s labor cost in Canada is $75 ($58 USD) an hour, $20 ($15 USD) more than its rivals Toyota and Honda.
His meeting came around the same time that the CAW announced a deal with General Motors to cut total hourly labor costs to $55 ($43 USD) in the short-term and $50 ($39 USD) by 2011. But Chrysler said that isn’t good enough.
Ford Canada is also joining Chrysler and announced today that it will not accept the same labor agreement that GM of Canada recently struck with the CAW because the deal does not allow enough cost savings for the automaker.
“We believe the recently negotiated agreement between General Motors Canada and the Canadian Auto Workers will not keep Ford’s Canadian operations competitive in today’s global economy,” said Joe Hinrichs, Ford group vice president.
Ford’s labor costs are estimated to be around $70 ($55 USD) an hour.
– By: Omar Rana