Chrysler Disappoints Canadian Auto Workers

09/17/96

Canada News Wire reported that Canadian Auto Workers President Buzz Hargrove responded to Chrysler's second economic offer towards settling a contract with the union by commenting, "to say I'm disappointed is an understatement." Chrysler made the offer 60 hours before the union's strike deadline.

"The company's continued insistence on concessions in the area of health care is both disturbing and insulting," Hargrove said. "At a time when this corporation has made record profits we are not going down the road of concessions. We will not allow the downloading of health care costs on to our membership . . . this issue alone will mean a strike."

Speaking about the key issues of outsourcing, time off the job and, using outside contractors to come in and do skilled trades and production work, Hargrove said, "We are a long ways apart with a short time to go. I really don't think Chrysler has accepted that they must recognize the principle of 'work ownership' in 1996 bargaining. When workers are producing a quality product in a productive manner at reasonable cost and generating profit for the corporation, the workers and the communities the plants are in deserve to share in that success."

Hargrove indicated that Chrysler was to present a new proposal on outsourcing Sunday afternoon. It will be the first major dialogue on the outsourcing issue since Chrysler reviewed and rejected the union's first proposal a few days ago.

The union also objected to Chrysler's proposals to hire new employees at a lower rate and make them work longer before receiving normal wages. Hargrove labeled the proposal an attempt to create "second class citizens in the workplace."

Ken Lewenza, the CAW's Master Bargaining Committee Chairperson for Chrysler, said the committee was unanimous in rejecting the company's second proposal. "We have a right to share in the success. I reminded Chrysler this morning about the millions paid to Lee Iacocca and Kirk Kerkorian to get them to back off their plan to take control of the company."

Both Hargrove and Lewenza were emphatic about the membership's willingness to strike on the key issues as well as the concessions.

Paul Dever -- The Auto Channel