Len_A Posted April 25, 2009 Share Posted April 25, 2009 From Automotive News this evening. The Canadian Auto Workers tentatively agreed tonight to new concessions that will save the struggling automaker $240 million annually and help the carmaker to try to avoid a bankruptcy filing, CAW President Ken Lewenza said at a news conference. In exchange, the CAW got Chrysler and potential partner Fiat SpA to agree to keep its two Chrysler assembly plants open even if bankruptcy is unavoidable, Lewenza said. General Motors and Ford Motor Co., which signed new CAW agreements earlier, have indicated their desire to get the same concessions as those negotiated with Chrysler, Lewenza said. The agreement kept wages intact at about $35 an hour Canadian. But the union gave up break time, bonuses, tuition reimbursement, some supplemental pay and semiprivate hospital rooms. As part of the plan, the union agreed to institute Fiat's manufacturing processes as well. The CAW also negotiated the creation of a retiree health care trust similar to the Voluntary Employee Beneficiary Associations negotiated in 2007 by the UAW. Terms need to be ironed out, Lewenza said. But Chrysler has agreed to capitalize the fund adequately to support the benefits negotiated, he said. The fund will save Chrysler money because it transfers the obligation to the trust for seeing that retirees get supplemental benefits beyond those offered by Canada's national health care system. Download a copy here: Automotive_News_Chrysler__CAW_reach_tentative_contract_deal.pdf Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 25, 2009 Share Posted April 25, 2009 Sounds like the CAW got a really good deal from Fiat and Chrysler. It looks like if Chrysler goes belly-up, they will purchase the Canadian plants. The Canadian plants will survive even if Chapter 11 is inevitable," Lewenza said. LINK We're living to fight another day," Lewenza said. "But the fear and uncertainty is not over. Not by a long shot." Specifically, he said representatives of Chrysler and Fiat told him that if Chrysler files for Chapter 11 bankruptcy protection next week, the company will be split into "a good company and a bad company. And the bad company would be sold off." LINK Quote Link to comment Share on other sites More sharing options...
Topgun Posted April 25, 2009 Share Posted April 25, 2009 Sounds like the CAW got a really good deal from Fiat and Chrysler. It looks like if Chrysler goes belly-up, they will purchase the Canadian plants. LINK LINK Perfect Storm 1 Ken Lewenza 0 Quote Link to comment Share on other sites More sharing options...
bobsyouruncle Posted April 25, 2009 Share Posted April 25, 2009 They start to vote as early as today. If anyone finds the contract highlight sheets online, please post. I have read the media's list of concessions, but would like to see exactly what the CAW presented at the meeting. Quote Link to comment Share on other sites More sharing options...
electrocutioner Posted April 25, 2009 Share Posted April 25, 2009 They start to vote as early as today. If anyone finds the contract highlight sheets online, please post. I have read the media's list of concessions, but would like to see exactly what the CAW presented at the meeting. Until somebody posts the highlight sheets-this is taken from the CAW website this afternoon: New CAW/Chrysler concessions The agreement includes all of the cost-saving provisions originally included in the contract negotiated with General Motors Canada in early March. It also contains some additional provisions, including: o The elimination of semi-private hospital coverage. o The elimination of a one-time $3,500 vacation buyout negotiated in 2008. o The elimination of clawback reimbursement through the SUB program. o The elimination of employee car purchase and tuition rebate programs. o An increase in the waiting period for sickness & accident benefits. o A reduction in the maximum dispensing fee for prescriptions. The agreement also contains several operational changes that will further enhance productivity and efficiency in Chrysler's Canadian operations (which are already the most productive for Chrysler in the world). These provisions include the adoption of the "World Class Manufacturing" operating system that is used by Fiat in its global production operations. (Fiat is anticipated to merge with Chrysler through the restructuring process.) Finally, the agreement also contains measures aimed at providing retiree pension and health benefits (so-called "legacy costs") in a more cost-efficient manner. The pension contribution timetable is adjusted in line with provisions announced by the Ontario government in its 2009 budget, and the CAW and Chrysler have agreed to establish a Canadian Health Care Trust (HCT) to provide retiree health benefits. This initiative will be similar to U.S. VEBA arrangements, although with several important differences; the details of this plan will be worked out over the next month. Quote Link to comment Share on other sites More sharing options...
electrocutioner Posted April 25, 2009 Share Posted April 25, 2009 I wonder how they are going to make out with the promised re-introduction of COLA this September? Trimding? Quote Link to comment Share on other sites More sharing options...
gocash Posted April 25, 2009 Share Posted April 25, 2009 I wonder how they are going to make out with the promised re-introduction of COLA this September? Trimding? I think that COLA was frozen til 2012 along with wages in the recent GM deal.I may be wrong. Quote Link to comment Share on other sites More sharing options...
electrocutioner Posted April 25, 2009 Share Posted April 25, 2009 I think that COLA was frozen til 2012 along with wages in the recent GM deal.I may be wrong. Yes you may be correct about that. So assuming that Chrysler members are scared enough to vote in this turd,what happens with pattern bargaining? Is it broke or does GM ask for a return visit? Does Ford demand parity with the GM or Chrysler agreement? Interesting times. Quote Link to comment Share on other sites More sharing options...
lquidspine Posted April 25, 2009 Share Posted April 25, 2009 Yes you may be correct about that. So assuming that Chrysler members are scared enough to vote in this turd,what happens with pattern bargaining? Is it broke or does GM ask for a return visit? Does Ford demand parity with the GM or Chrysler agreement? Interesting times. I do not know much about Canadian Health Care so I can not speak on that part of this deal, but the rest seems to be almost exactly what Ford UAW workers past earlier this year. I am not one for concessions but a deal similar to the Ford US deal should be considered a win with Chrysler and GM's current situation, as long as the bankruptcy judges do not rape them if it comes to that down the road. Quote Link to comment Share on other sites More sharing options...
Trimdingman Posted April 25, 2009 Share Posted April 25, 2009 I do not know much about Canadian Health Care so I can not speak on that part of this deal, but the rest seems to be almost exactly what Ford UAW workers past earlier this year. I am not one for concessions but a deal similar to the Ford US deal should be considered a win with Chrysler and GM's current situation, as long as the bankruptcy judges do not rape them if it comes to that down the road. If we get hyper-inflation before September 2012, with no COLA, that will be the equivalent of a big wage cut. Before 2012, we could have up to 50% inflation or more, depending on how badly the dollar collapses. That would be the same as a $15 an hour wage cut, or more. We need to put COLA back and never touch it again. The other stuff that they gave up is just peanuts. COLA is the biggie. It will cost us. Quote Link to comment Share on other sites More sharing options...
99Pony Posted April 25, 2009 Share Posted April 25, 2009 Until somebody posts the highlight sheets-this is taken from the CAW website this afternoon: New CAW/Chrysler concessions The agreement includes all of the cost-saving provisions originally included in the contract negotiated with General Motors Canada in early March. It also contains some additional provisions, including: o The elimination of semi-private hospital coverage. o The elimination of a one-time $3,500 vacation buyout negotiated in 2008. o The elimination of clawback reimbursement through the SUB program. o The elimination of employee car purchase and tuition rebate programs. o An increase in the waiting period for sickness & accident benefits. o A reduction in the maximum dispensing fee for prescriptions. The agreement also contains several operational changes that will further enhance productivity and efficiency in Chrysler's Canadian operations (which are already the most productive for Chrysler in the world). These provisions include the adoption of the "World Class Manufacturing" operating system that is used by Fiat in its global production operations. (Fiat is anticipated to merge with Chrysler through the restructuring process.) Finally, the agreement also contains measures aimed at providing retiree pension and health benefits (so-called "legacy costs") in a more cost-efficient manner. The pension contribution timetable is adjusted in line with provisions announced by the Ontario government in its 2009 budget, and the CAW and Chrysler have agreed to establish a Canadian Health Care Trust (HCT) to provide retiree health benefits. This initiative will be similar to U.S. VEBA arrangements, although with several important differences; the details of this plan will be worked out over the next month. So if I understand this correctly, we're losing "A plan". If that's the case, that's just stupid. Quote Link to comment Share on other sites More sharing options...
Trimdingman Posted April 25, 2009 Share Posted April 25, 2009 So if I understand this correctly, we're losing "A plan". If that's the case, that's just stupid. They set us up as the whipping dog for the public. Now they have to whip us to get the public's approval. Let's see. The government offers them a $40 billion loan at what 1%? They loan it out for car loans at 5%. That gives them a 4% spread. That is 1.4 billion a year profit. What do they have to do to get this? They really have to sacrifice. Thay have to cut their employees' wages. They are laughing all the way to the bank. Quote Link to comment Share on other sites More sharing options...
forddaughter Posted April 25, 2009 Share Posted April 25, 2009 Gave up A-Plan?? WTH?? Unless there is going to be another employee incentive that is just plan STUPID! Quote Link to comment Share on other sites More sharing options...
Charged92 Posted April 25, 2009 Share Posted April 25, 2009 So if I understand this correctly, we're losing "A plan". If that's the case, that's just stupid. The way I read that, I think they are talking about the $2600 we get. Quote Link to comment Share on other sites More sharing options...
rangermon Posted April 26, 2009 Share Posted April 26, 2009 "o The elimination of a one-time $3,500 vacation buyout negotiated in 2008." -So do we have to payback that bonus we got in January? Quote Link to comment Share on other sites More sharing options...
OAC_Paint Posted April 26, 2009 Share Posted April 26, 2009 Their sub pay got cut. Does anyone know by how much? Quote Link to comment Share on other sites More sharing options...
canuck_871 Posted April 26, 2009 Share Posted April 26, 2009 Their sub pay got cut. Does anyone know by how much? Where did you see anything about the SUB being cut? The only thing I saw was the elimination of the clawback reinbursement from the SUB fund. I believe this is when the company would pay your E.I. clawback that you had to pay back to the government. Quote Link to comment Share on other sites More sharing options...
Hosh Posted April 26, 2009 Share Posted April 26, 2009 "o The elimination of a one-time $3,500 vacation buyout negotiated in 2008." -So do we have to payback that bonus we got in January? You can't be serious Quote Link to comment Share on other sites More sharing options...
shamrock157 Posted April 26, 2009 Share Posted April 26, 2009 (edited) So assuming that Chrysler members are scared enough to vote in this turd,what happens with pattern bargaining? Is it broke or does GM ask for a return visit? Does Ford demand parity with the GM or Chrysler agreement? Interesting times. From the Canadian Press Article The CAW will now negotiate similar deals with Ford and GM to maintain fairness and competitiveness among the Detroit Three automakers. Edited April 26, 2009 by shamrock157 Quote Link to comment Share on other sites More sharing options...
glassman Posted April 26, 2009 Share Posted April 26, 2009 Where did you see anything about the SUB being cut? The only thing I saw was the elimination of the clawback reinbursement from the SUB fund. I believe this is when the company would pay your E.I. clawback that you had to pay back to the government. On CTV news Saturday nighy they said workers lost EI top up, so it straight ei when on layoff,time to end pattern bargaining, hope gm workers stick to their guns and their contract. Quote Link to comment Share on other sites More sharing options...
canuck_871 Posted April 26, 2009 Share Posted April 26, 2009 On CTV news Saturday nighy they said workers lost EI top up, so it straight ei when on layoff,time to end pattern bargaining, hope gm workers stick to their guns and their contract. Not to be argumentative, but I rarely put any accuracy and value on most media reports. What I saw was on the CAW web site and it made no mention of the SUB being cut right out. Quote Link to comment Share on other sites More sharing options...
Trimdingman Posted April 26, 2009 Share Posted April 26, 2009 Not to be argumentative, but I rarely put any accuracy and value on most media reports. What I saw was on the CAW web site and it made no mention of the SUB being cut right out. From what I understood, what was cut was the clawback re-imbursement. If you make over a certain amount, and draw EI, when you do your tax, some of that money is clawed back. You take your tax statement to HR and you are re-imbursed for that clawback. I have done it several times. Quote Link to comment Share on other sites More sharing options...
Trimdingman Posted April 26, 2009 Share Posted April 26, 2009 So assuming that Chrysler members are scared enough to vote in this turd,what happens with pattern bargaining? Is it broke or does GM ask for a return visit? Does Ford demand parity with the GM or Chrysler agreement? Interesting times. From the Canadian Press Article The CAW will now negotiate similar deals with Ford and GM to maintain fairness and competitiveness among the Detroit Three automakers. In the late 70s, we broke the pattern with Chrysler. They got a lower hourly rate and company stock. It took, I think, two contracts before they caught back up. It is not written in stone that we have to accept the same concessions as Chrysler. Quote Link to comment Share on other sites More sharing options...
canuck_871 Posted April 26, 2009 Share Posted April 26, 2009 From what I understood, what was cut was the clawback re-imbursement. If you make over a certain amount, and draw EI, when you do your tax, some of that money is clawed back. You take your tax statement to HR and you are re-imbursed for that clawback. I have done it several times. Yes this is what I understood as well. Leave it to the media to distort the truth. Quote Link to comment Share on other sites More sharing options...
OAC_Paint Posted April 26, 2009 Share Posted April 26, 2009 Yes this is what I understood as well. Leave it to the media to distort the truth. I've read "cuts to supplementary unemployment benefits" a couple different places. Hopefully the media juat has it mixed up with the EI clawback. http://toronto.ctv.ca/servlet/an/local/CTV...=TorontoNewHome Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.