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.



11/23, 12:37 PM
posted by:
jackjimturkey
I hate when financial types talk about “softening.” Hope the sides work out a deal everybody can live with.
11/23, 12:48 PM
posted by:
CA36GTP
If there was a union on the Titanic, they would’ve been blocking the life boats over pay raises while it sank lower and lower.
11/23, 12:58 PM
posted by:
WOOKIE62
Someone tell Buzz Hargrove that there are no guarantee’s in the Automotive business. Tell your people to pack thier lunch and go to work like everyone else.
11/23, 12:59 PM
posted by:
Commodore
And what did we leard today kids?
That unions are [selfish, greedy] bad
11/23, 1:02 PM
posted by:
RicardoHead
JJT, I don’t think this guy is a financial type – he’s a union leader.
Part of me wants to say that this guy is correct that Chrysler’s deal with the UAW is stupid. It is stupid because they bothered to even make a deal – Chrysler should have sent them packing.
The other part of me works with big corporate America on a daily basis in a very responsible management position and gets to see, hear, and witness exactly how senior management plans to go about screwing employees over in a big way, and how they go back on promises all the time and phuck people over. When I see that crap, it makes me sometimes understand the need for a strong union, but both sides need to be willing to compromise and not make absurd demands.
11/23, 1:04 PM
posted by:
CA36GTP
Unions aren’t about protecting employees anymore, they are about destroying companies.
Instead of being a partner, they are a parasite.
11/23, 1:35 PM
posted by:
johnnycanuck
Up here north of the 49th, we ALL know Buzz Hargrove and, simply put, you either love him or hate him. I remember watching him on Autoline Detroit one morning and I got the impression McElroy couldn’t get him out of the studio fast enough. If Hargrove had his way he’d unionize the turds in your toilet. This is going to be fun to watch this summer. I hope LLN keeps on top of it just for the entertainment value alone.
11/23, 1:36 PM
posted by:
jackjimturkey
R-head: He’s parroting language used ny financial types. Had a company down here sent a press release in some convoluted language saying they were replacing their independent auditor. I asked him to explain, and he said the company wanted one of the Big Four, as it is growing.
The only reason I’ve got a good salary and working conditions, I’m sure, is the fear that we’ll unionize. I think every company should take the following approach: Customers first, employees second, shareholders third.
CA36: good union’s aren’t parasitic.
11/23, 1:36 PM
posted by:
jackjimturkey
good unions
11/23, 1:53 PM
posted by:
RicardoHead
I agree JJT but the current large company motto is shareholders first, customers second, employees last.
I see it every day and deep down it bugs the crap out of me, although I understand why, from a system standpoint (macroeconomically) it is this way.
11/23, 3:41 PM
posted by:
BLISS
make it better for chrysler
11/23, 5:39 PM
posted by:
Commodore
If I was president of Chrysler, I’d respond by issuing a statement saying that “unions are stupid”.
11/23, 7:14 PM
posted by:
Ian
“I’ll tell you what’s stupid. YOU! Stupid.” David Puddy; Seinfeld . lol sorry had to say it
11/23, 8:54 PM
posted by:
1c3d0g
Well, well, well…if the CAW doesn’t want to make sacrifices, then perhaps Chrysler should find a new home to produce its vehicles…how about that? Who’d be the stupid one then, huh?!?
11/23, 9:34 PM
posted by:
TOZO
Price of the Canadian dollar has shot up to ridiculous highs. Meaning: Rising production costs in Canada. So: The CAW is in no position to make any demands.
11/23, 10:30 PM
posted by:
jdasch1
Good god! Hargrove’s a f***ing idiot! Why do these companies need to manufacture in expensive Canada anyway?? Get used to this…High oil prices are here to stay! This said, Canada is rich for the next 50 years! Hundreds of years of oil in the tarsands up there, so the Canadian dollar is not coming backdown anytime soon. Get ready to manufacture more down in the states, less in Canada. Stuff it Hargrove!
11/24, 9:05 AM
posted by:
autonut
Regardless of who is more stupid Chrysler board or CAW the rank and file will get it up the rear end in a bad way. Painful, unless they homos.
11/24, 10:02 AM
posted by:
DeansterTJ
You know what’s stupid? Being named “BUZZ” you ****ing ****bag.
11/26, 2:47 AM
posted by:
C6Racer
Aw boo hoo. Why don’t you go tell your mommy, Hargrove.
11/26, 11:44 AM
posted by:
SwerveEarly
As Ricohead said it is just the way it is.
This attitude is why we need unions. In 1st world countries competing with 3rd world countries the workers need to be protected artificially one way or another. Thru tariffs or unions or another means. If it is not, middle classes go thru painful cycles of economic inlation and loss of value to their markets. Stability (particularly in the U.S.) and prosperity amongst the middle class is what makes the modern western societies so great for so large a percentage. Unions help foster this. Unions can have problems but they are very positive in the right situation.
11/26, 6:31 PM
posted by:
bnugent
Another Buzz Hargrove sticking his head in the clouds. He has to relize that people do not want american cars and haven’t for years. This would lead to less cars being sold and the big 3 changing teir way of doin business from selling to production numbers to building to what people want.
There is going to be big cuts up here and he knows thats coming. He is just standing his position to make himself look good for the CAW memebers instead of just taking what the big three say they are going to give him.
Another thing that should be consisdered is that the CAW is losing memebers. I have not heard of them making any big gains in their memebership. They have been camped out in front of the Allison plant for years trying to convince Honda workers to unionize with no luck