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Marchionne heads to U.S., skips Canada, for merger talks

04/20/2009, 3:43 PM

By Andrew Ganz

Fiat CEO Sergio Marchionne says he is headed to Detroit and Washington today to attempt to finalize the proposed Chrysler-Fiat merger before the April 30 deadline – but he’s not headed to Canada, where the Canadian Auto Workers’ resistance to negotiate could spell the end of the tie-up.

The CAW union had invited Marchionne to take part in their talks with Chrysler, but a source close to Marchionne at Fiat leaked to the media that the CEO won’t travel north of Detroit.

Workers unions, particularly the CAW, have been unwilling to accept the concessions Fiat and Chrysler say are necessary to complete the merger by the April 30 deadline imposed by the Obama administration’s auto industry task force. Chrysler has had a brief but fiery dispute with the CAW over the last few months; the automaker went as far as suggesting that it would cease operations entirely in Canada.

Last month, the CAW and General Motors reached a concessions agreement that Chrysler and Ford say doesn’t go far enough.

Marchionne will, however, try to firm up some details with Chrysler and Detroit and with the U.S. government in Washington, D.C.

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04/20, 4:02 PM

posted by:

JakeK66

I guess they choose to be out of work instead of having jobs with less pay. I’m happy, this means the Chrysler plant by where I live that builds minivans will reopen, it’s said to be one of the more modern Chrysler plants anyway.

04/20, 4:04 PM

posted by:

Thunder Chicken

I’m rather surprised LLN has made no mention of last week’s declaration by the Canadian government that the unionized workers must take a $19/hr hit or the Canadian government will offer no more money (something about Joe Taxpayer subsidizing union employees who make twice, three times, and many more times as much as they must have gotten the government’s goat). I’m also rather amazed that today’s “FVCK YOU” reply by the CAW wasn’t deemed L-L-Newsworthy.

CNN has reported these stories, and the consensus is that if the union digs in and doesn’t concede Chrysler will likely end up in a Chapter 7 liquidation. They conclude this by explaining that no company would ever step in to pick up the ashes (IE what Fiat is offering to do) because none would want the union costs associated with it.

Chrysler is going to dangle in the wind, and tens of thousands of people who were previously paid way too much and refused to be paid reasonable wages (and, yes, a cut of $19/hr is reasonable – if Toyota and Honda workers can live on those wages, so can Big Three workers doing identical work) will now instead be paid nothing. This is the one bright spot in the fall of Chrysler: Hopefully GM’s union rabble will learn their places as they stare over the corpse of what was once Chrysler.

04/20, 4:04 PM

posted by:

elmdodge

i hope loggin still good aye !

04/20, 4:48 PM

posted by:

Bubs Solo

Retards…Their pay would not change only their benefits would be affected. People this stupid don’t deserve jobs.

04/20, 5:23 PM

posted by:

rockstars

JakeK66, you’re right. St. Louis South is one of the more modern plants. Belvidere and Sterling Heights are the tops in the corporation, though. St. Louis South is in 3rd place there but still better than most. I’ve been a salaried employee in both Belvidere and St. Louis South (and North) plants.

04/20, 5:51 PM

posted by:

Borat

Jake, frankly, not many of us care about state of Chrysler in St.L. On another hand we will start real revolution in Anheuser-Busch factory to close. Forget the tea party!

04/20, 6:32 PM

posted by:

inspire

Ironically — Windsor, Ontario (across the river from Detroit, where the minivans are currently assembled) is *south* of Detroit, MI. And Chrysler Canada’s HQ is in Windsor (facing GM’s HQ — the Renaissance Center). Another small piece of trivia is the Marchionne (CEO of Fiat) was educated in Windsor, Ontario (University of Windsor’s MBA program), so he knows the area, the economy and the people, very well.

So his “snubbing” of Canada may be intentional. Maybe CAW members will realize what this will mean to them and will have their leadership change their approach to upcoming negotiations before the April 30th deadline. Otherwise — St. Louis (and any other Chrysler mothballed plant) will have plenty to celebrate. The auto industry in Canada … will be a ghost industry.

Thank you, CAW for creating American jobs!

04/20, 7:45 PM

posted by:

Thunder Chicken

…Except the same union concessions are being sought from the UAW. Do you think they’ll be any smarter than their Canadian counterparts?

04/21, 2:07 PM

posted by:

shaver

Gung Ho with Michael Keaton, should be rereleased into theatres. Its 1985 all over again.
http://www.imdb.com/title/tt0091159/

 
 
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