Chrysler’s statement regarding CAW talks, no agreement reached

Chrysler just dropped us an email regarding its statement on CAW talks attributed to Al Iacobelli, Chief Bargainer. The Canadian Auto Workers and Chrysler failed to reach a tentative agreement on concessions needed as a condition to receive loans from the Canadian and Ontario governments. Chrysler had hoped to reach a deal with the CAW to meet its Tuesday deadline to submit a restructuring plans to the governments as a part of a request for $2.3 billion in aid.

Chrysler LLC’s statement: 

“We all recognize that we are in unprecedented times as it relates to the global economy and current financial crisis, which has a direct impact on the automotive industry.  After several days of bargaining in good faith, Chrysler and the CAW have not reached an agreement that closes the competitive gap with other automobile manufacturers in Canada, to ensure Chrysler’s immediate viability.

The Company has been very clear in its Canadian Government testimony and position with the CAW:  we must ‘close the competitive gap’ of $19 an hour immediately, with a goal of not having to affect base wages and pensions; while contributing to Chrysler’s viability with direct annual savings to the bottom-line in the current year, and each of the remaining years of the contract.

Click through for more.

Although we made progress toward ‘closing the gap’, significant issues related to the existing ‘pattern’ remain on the table. These are not normal business circumstances and all Chrysler constituents have been asked to ‘break pattern’ ““ employees, retirees, dealers, suppliers and others.  These requests have been made to all of our constituents, including the CAW, to ensure Chrysler’s viability.

We continue to engage with the CAW to resolve these issues in a responsible manner.”

Note: The pictures above is of Chrysler Canada’s headquarters in Windsor, Canada. If you look closely you can see a reflection of General Motors headquarters on the U.S. side.

– By: Omar Rana