Despite the Canadian Auto Workers unions making deals with Ford and GM (tentatively) in Canada, the CAW isn't yet coming to terms with the Chrysler Group. As a matter of fact, the two parties are far from reaching an agreement, at least as far as the union's head honcho is concerned.
Chrysler reportedly wants to get rid of a cost-of-living increase altogether and adjust lump sum payments. GM employees will vote on their tentative deal later this week, while Ford employees already approved their deal last week.
"It is a tug of war, quite frankly," is how CAW President Ken Lewenza described the negotiations. He went on to say the union still hasn't seen a formal economic proposal from Chrysler.
The sticking points include the cost-of-living increase that's due for the final year of the deal and offsetting a $0.33CAD cent-an-hour pay increase set to go live in the last quarter of the current contract. Chrysler also wants to move around the timing and structure of the $9,000CAD in lump sum bonus payments, according to the CAW, as reported by Automotive News. The cost-of-living bump and bonus payments were established as part of a framework deal with Ford initially, which set the pattern for GM and Chrysler. Lewenza said he may be forced to give strike notice later this week if the talks stall, with a notice of only 24 hours.
