Ford being the initial targetWednesday Sept. 14 around noon they will apply more pressure on Chrysler
Is a strike at Chrysler in almost inevitable?
Prescription getting filled in plant…what about privacy??
Strike would hurt GM
Best-case scenario…could be
Get deal with Ford by Wednesday…. ask Chrysler and Gm to agree to same deal
GM signs on
Chrysler says no…still gives a few days till contract expires to mount pressure
Strike or No Strike @ Chrysler they decide to step away from the pack or stand inline
AS iT hAppENs
bloomberg
Ford Picked by Canadian Auto Union as Target in Talks (Update3)
Sept. 8 (Bloomberg) -- Ford Motor Co. was chosen by the Canadian Auto Workers as the target for talks leading up to a Sept. 20 deadline, with the union saying the company offers the best prospect among U.S.-based automakers for an agreement.
Negotiations with Ford will intensify and ``I don't see any reason we can't do this early next week,'' union President Buzz Hargrove said at a news conference today in Toronto. Stacey Allerton Firth, a Ford of Canada vice president, said in an interview that the unit ``welcomes the opportunity to set the pattern'' and is confident of reaching an accord next week.
If talks with Ford are more difficult than expected, the CAW may shift to DaimlerChrysler AG's Chrysler as the target, Hargrove said. That decision will be made by midday Sept. 14, he said. Members plan to walk off the job at either Ford or Chrysler if no agreement is reached by 11:59 p.m. Sept 20, when the current contracts expire.
The CAW will use the terms of an accord with the target company as the basis for agreements to be bargained during the next month with the other two automakers. Ford, Chrysler and General Motors Corp. are all trying to hold down increases in Canadian labor costs. Hargrove said all the automakers had taken tougher stances than the union initially expected.
The companies are concerned about costs after GM lost $1.39 billion in this year's first half and Ford's earnings slid 31 percent. The union says the automakers' Canadian operations are profitable. The Canadian talks may set the tone for the companies' 2007 contract negotiations in the U.S. with the United Auto Workers union.
``It should not be difficult to agree on the bargaining points,'' said J.P. Morgan Securities analyst Himanshu Patel in a note to investors.
Wages, Health Care
Patel, who attended an analyst meeting in New York yesterday with Hargrove, said a strike isn't likely. The union is looking for wage adjustments to stay competitive with U.S. workers, and in exchange for avoiding co-payments on health insurance would agree to cost-cutting measures such as filling prescriptions at in-plant pharmacies, Patel said.
The union represents 12,460 factory employees at Dearborn, Michigan-based Ford and 11,440 at Auburn Hills, Michigan-based Chrysler. GM, based in Detroit, employs 17,480 CAW members.
The CAW represents workers at factories that make critical vehicles for the companies. Those include Brampton, Ontario, where Chrysler produces the 300 sedan, its best-selling car in the U.S. GM's Oshawa, Ontario, plant is one of four factories that make the Silverado pickup truck, GM's top-selling vehicle in the U.S. In Windsor, Ontario, Ford builds engines for F-Series pickups, the top-selling line of vehicles in the U.S.
General Motors
Negotiations at GM were put ``on the back burner,'' Hargrove said. Delphi Corp., GM's largest supplier, said in August that it may file for bankruptcy unless it gets assistance from the automaker and the United Auto Workers union.
``There is going to be a huge cost burden transferred from Delphi as we now know it'' to GM, Hargrove said. Picking GM as the target would ``almost guarantee you'd have to have a strike,'' he said.
``We will be at General Motors, the only question is when,'' the union leader said. ``They will have to accept'' the same basic terms as the target company, he said.
At Ford, ``the body language has never been throwing down the gauntlet,'' he said. Hargrove said Chrysler has taken a hard line. ``I think a strike is inevitable at Chrysler,'' he said.
GM was the target company in the last talks, in 2002. The union reached agreements with all three companies that year without a strike. Canadian workers haven't struck since a 22-day walkout against GM in 1996.
The 2002 agreement with GM came about five hours before the deadline. The CAW-Ford accord was reached a day ahead of the deadline. Chrysler came close to a walkout, reaching an agreement 25 minutes before the time set by the union for a strike.
To contact the reporter on this story:
Bill Koenig in Southfield, Michigan at [email protected]