Chrysler Canada and the Canadian Auto Workers union have finally reached an agreement, ratified by the workers over the weekend. In all, 87% of Chrysler Canada's 8,000 workers accepted the measures put forth to allow the company to continue with its restructuring plan.
The agreement allows Chrysler to save some 240 million dollars. The deal includes the same concessions as those in the GM agreement, but also eliminates semi-private hospital room coverage, the employee auto purchase plan as well as the school fees discount program as of next year.
The salary increase scale has also been revised in order to slow its progression somewhat. However, the pension plan for retired workers has apparently been maintained in full.
With this agreement, Chrysler should be able to receive financial support from the Canadian government and, most importantly, continue negotiations with Fiat, who is still interested in buying back a part of the company.
On the American side, workers have also accepted an agreement with Chrysler and have until Wednesday to give their final approval. Details of the agreement are as yet unknown, but as with the Canadian deal, the requested concessions do not affect salaries but concentrate entirely on benefits. While the Canadian deal allows Chrysler to save 240 million dollars, a number hasn't been associated with the American results.
We still have to keep an eye on the other two big American automakers present in Canada, though, as General Motors and Ford will want their own workers to sign a similar agreement.
photo:Chrysler
The agreement allows Chrysler to save some 240 million dollars. The deal includes the same concessions as those in the GM agreement, but also eliminates semi-private hospital room coverage, the employee auto purchase plan as well as the school fees discount program as of next year.
The salary increase scale has also been revised in order to slow its progression somewhat. However, the pension plan for retired workers has apparently been maintained in full.
With this agreement, Chrysler should be able to receive financial support from the Canadian government and, most importantly, continue negotiations with Fiat, who is still interested in buying back a part of the company.
On the American side, workers have also accepted an agreement with Chrysler and have until Wednesday to give their final approval. Details of the agreement are as yet unknown, but as with the Canadian deal, the requested concessions do not affect salaries but concentrate entirely on benefits. While the Canadian deal allows Chrysler to save 240 million dollars, a number hasn't been associated with the American results.
We still have to keep an eye on the other two big American automakers present in Canada, though, as General Motors and Ford will want their own workers to sign a similar agreement.
photo:Chrysler