The UAW may have ratified a new contract with Chrysler here in the U.S., but it looks as though the automaker will face some pretty harsh resistance when it sits down for negotiation with the Canadian Auto Workers this summer. CAW president Buzz Hargrove called the recently inked deal between the UAW and Chrysler “stupid.”
“There’s absolutely no justification for what they’ve done. We’ve said to them that we think this is a stupid strategy,” Hargrove told Reuters.
Chrysler recently announced that it would end production of the Dodge Magnum and Chrysler Pacifica, a move that will eliminate over 1,000 jobs for the CAW.
Hargrove feels that the recent cuts are too deep and aren’t justified, even amid Chrysler’s North American turnaround plan. “The announcements they made right after the UAW settlement really tested their credibility,” Hargrove said. “There’s a softening in the U.S. market which everyone’s aware of, but it’s nowhere near enough to justify what they did.” He continued: “This is about selling fewer vehicles and charging more to make money. It’s not something we’re opposed to — making money — but there’s a lot of people that are going to be paying, and I’m not sure it’s something they can do.”
Hargrove said that the CAW will not accept the same kind of concessions the UAW gave to Chrysler, General Motors and Ford — including a two-tiered wage system and a retiree health care fund.
The CAW’s negotiations with the Big Three are set to begin in July 2008 with the current contract expiring on September 17, 2008.
