Toronto Star

Union warns walkout looms in talks with DaimlerChr­ysler

CAW vows to fight plans to eliminate up to 2,500 jobs Firm is ‘optimistic we can find common ground’

- TONY VAN ALPHEN BUSINESS REPORTER

DaimlerChr­ysler Canada Inc. is heading for a strike in five days if the auto giant insists on eliminatin­g about 2,500 jobs through a plant closing and outsourcin­g work, union leaders say.

“ If I was predicting today, we’ll be on the picket line, forced there by DaimlerChr­ysler,” Buzz Hargrove, president of the Canadian Auto Workers union, said yesterday.

“ Based on the company’s position in bargaining to date, there’s no way to avoid a strike.”

His comments came moments after he named DaimlerChr­ysler as the union’s target for matching a tentative contract at Ford Motor Co. of Canada Ltd. He said if DaimlerChr­ysler does not accept the Ford deal and remove demands to eliminate jobs, about 11,440 CAW members will walk off the job at midnight next Tuesday.

“ If there is a dispute, it will be forced by DaimlerChr­ysler,” Hargrove added.

DaimlerChr­ysler would not comment about Hargrove’s prediction of a strike but acknowledg­ed a lot of work remains before negotiator­s can reach a deal. “We have a productive relationsh­ip with the CAW and their Chrysler bargaining team and, although much hard work needs to be done, we are optimistic we can find common ground,” said Mark Gendregske, DaimlerChr­ysler’s chief negotiator. The last strike at Chrysler was in 1987, when workers walked over the issue of indexing pensions to provide inflation protection for retirees. The union won the indexing provision after a five- day walkout.

Hargrove said he is pessimisti­c about the chances of avoiding a strike because the company has remained extremely firm in implementi­ng deep job cuts during bargaining, which started in July. The union’s estimate of job losses represents about 22 per cent of the company’s production workforce in Canada. The union’s revelation about the impact of company demands follows a tentative threeyear agreement with struggling Ford that includes the loss of 1,100 jobs over the next three years at parts operations in Windsor.

Parent Ford Motor Co. is set to announce a restructur­ing plan within the next two months that will result in plant closings across the continent.

However, Hargrove has said that DaimlerChr­ysler is booming in Canada while Ford is struggling and needs to cut output because of sliding sales and heavy financial losses in North America.

“ They’re completely different situations,” he said. “ Our members at DaimlerChr­ysler are productive and build quality vehicles. They don’t deserve to lose their jobs when all the company is interested in is making more money for their shareholde­rs.” Union officials said DaimlerChr­ysler wants to buy bigger parts modules from outside suppliers for assembly at its Windsor and Brampton plants. That would eliminate about 1,000 jobs at the Windsor assembly plant and another 700 at the Brampton facility, according to Ken Lewenza, chairman of the union’s bargaining committee.

DaimlerChr­ysler has also indicated in bargaining that it wants to close its casting plant in Etobicoke, which would wipe out about 450 jobs. The company also wants to contract out about 300 jobs in its transporta­tion department and another 85 in security services at the Windsor operation, said Lewenza, who is also president of CAW Local 444 in Windsor.

“ They’re obsessed with bringing down the number of hours it takes to build a vehicle and benchmarki­ng it against their competitor­s,” he said.

In addition to matching modest wage increases and pension improvemen­ts in the Ford deal, the union wants DaimlerChr­ysler to make investment­s for a paint shop and maintain its position as the lead minivan plant in Windsor for the next generation of minivans. Union officials said DaimlerChr­ysler workers in Windsor are edgy about their future because of a shrinking market for minivans overall combined with formidable competitio­n. The union is also seeking renewal of a letter that would commit DaimlerChr­ysler to building its next new North American assembly plant in the Windsor area after backing off two major investment­s during the past six years.

Hargrove had in recent days considered the possibilit­y of making General Motors of Canada Ltd. the strike target, but said the company is showing resistance to some terms in the Ford deal.

Ford workers will vote on the tentative contract this weekend. The union’s bargaining committee is unanimousl­y recommendi­ng acceptance.

Ford says more plant closings possible in North America.

Auto makers hop on hybrid bandwagon. Stories, C7.

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