Workers, Chrysler close to making deal

The Canadian Auto Workers and Chrysler say they are close to reaching a deal that would see the union successfully renew labour contracts at the Big Three automakers without resorting to a strike.

CAW president Ken Lewenza said the two sides cleared up a lot of differences overnight Tuesday in the most productive bargaining session since talks began.

“We had a lot of momentum and if those constructive, productive discussions continue... then I’m very, very confident that we can get a deal,” he said in an interview during a break from GM ratification meetings.

“We’re down to a handful of issues,” he said Wednesday afternoon, declining to specify what is standing in the way to an agreement.

The tone has dramatically changed from a week ago when Lewenza urged Chrysler to “get serious” and table a proposal that follows the pattern set with agreements at Ford and General Motors.

Industry observers say those deals gave Chrysler little choice but to accept the framework agreement with some modifications to address its specific operations.

Its Canadian operations account for 25 per cent of its global production, the largest of the U.S. automakers.

Lewenza attributed the change to a realization by the company and union that they need each other to achieve their common objectives of increasing market share and strengthening the company.

Chrysler submitted an economic proposal Tuesday evening that prompted an exchange of several proposals throughout the night until 5:30 a.m.

“I can’t really predict when the deal will take place,” said company spokeswoman LouAnn Gosselin. “[But] talks are progressing well.”

The CAW has characterized the talks with Chrysler as the most difficult.

The automaker has been concerned about being bound to the framework agreement established by Ford and General Motors that pays lump sum payments over four years in lieu of cost-of-living and wage increases.

Ford workers accepted their agreement by a margin of 82 per cent.

Under the deal, each worker will get $2,000 a year in the second, third and fourth years of the contract to cover cost-of-living increases, plus a $3,000 ratification bonus.

Long-term care provisions have also been capped at $800 per month for new hires and the prescription drug plan has been changed to reduce costs.

New hires at Ford and GM will also begin their careers at $20 an hour, down from $24, and take 10 years to reach peak pay levels of $34 an hour instead of the six years it currently takes.

New employees will also receive hybrid pension plans instead of pure defined benefit plans for current employees.

Lewenza said the lump sum payments were just one of a few issues that remained unresolved.