Chrysler backs off plant closing

AUTO TALKS

DaimlerChrysler Canada Inc. was close to reaching a contract last night with 11,400 employees after removing proposals to close an Etobicoke plant and to outsource significant work from two assembly operations, the union says. The Canadian Auto Workers union said yesterday DaimlerChrysler had backed off on the contentious proposals and showed signs it will probably match financial terms of an earlier contract at Ford Motor Co. of Canada Ltd. CAW president Buzz Hargrove said the company will keep a casting plant in Etobicoke open and not outsource or contract out jobs at assembly operations in Brampton and Windsor. The company will, however, phase out some work at the Etobicoke plant, eliminating about 60 jobs. Furthermore, the union is working on “ mutual solutions” to increase productivity in Windsor and Brampton that would eliminate an unidentified number of other jobs, Hargrove confirmed. The CAW indicated that, if the company did not remove the proposals, a strike would start at midnight tonight. Workers have not walked off the job at Chrysler since 1987.

Hargrove said he had hoped to announce a tentative contract by early evening yesterday, but hit delays on productivity issues.

“It’s coming together slowly but surely,” Hargrove told reporters. “ I have some optimism, but we’re a little frustrated.”

Last week, the union estimated DaimlerChrysler’s proposals would reduce the workforce by about 2,500.

“ It’s fair to say it’s ( now) significantly less than the 2,500 jobs we talked about,” Hargrove said. CAW negotiators said they would not accept any job losses relating to outsourcing existing work, but the union could agree