CAW offers no breaks for auto bailout

Tyr

Council Member
Nov 27, 2008
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'I guess the CAW would much rather have it's members unemployed than contribute to the solution. For some deluded reason they believe that $16/hr for labour MORE than Toyota is not one of the problems

Nicolas Van Praet, National Post



Canadian Auto Workers union president Ken Lewenza yesterday rejected calls for his members to make concessions as part of any taxpayer-funded rescue of Detroit's car manufacturers, saying labour did not create the crisis now threatening General Motors Corp., Ford Motor Co. and Chrysler LLC with collapse.

"We've suffered"
Ken Lewenza, president of the Canadian Auto Workers union.

His comments came as U. S. senators began debating the merits of a US$25-billion emergency loans package for Detroit. The White House said the deal does not have sufficient political support to succeed.





In Ottawa, a senior government official said Stephen Harper's Conservative government has not made any decision on offering parallel aid.

"We don't see this as us being the problem," Mr. Lewenza said, adding he would "absolutely not" accept any further cuts after losing tens of thousands of jobs in recent years. "We've suffered our share of pain."

"It's easy to point fingers and look for a scapegoat, but the reality is more subtle and more complex" than blaming labour, said CAW economist Jim Stanford.
Mr. Stanford said newly signed contracts between the union and the Canadian arms of the Detroit automakers include several unprecedented givebacks, such as an 18-month suspension in cost-of-living increases.

A lack of policy attention from governments in both Canada and the United States have contributed to Detroit's collapse as much as anything else, he said.

"In Japan and Germany and Korea and now China, governments proactively nurture and support high-value export industries like autos. In North America, for the last two decades, we haven't bothered."

The CAW's defiant stance runs counter to the argument many North American lawmakers and business leaders are making: That all stakeholders, including workers and management, should give up something to secure an emergency aid package, as they did during the Chrysler bailout in 1979.

The CAW's position also threatens to undermine attempts by the Canadian and Ontario governments to offer aid packages to the Detroitbased automakers to protect thousands of auto jobs here.
 

Zzarchov

House Member
Aug 28, 2006
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So how much of price cuts are the CEO's and Executives taking again?

"There are tough times and we must tighten our belts, you are sinking this company"

"We?"

"Ok you are, but I only work here because the money is great, but one of us has to take a pay cut and fug it if its me, so cut your wages"

"Im in here for the same reason, so fug you"
 

darkbeaver

the universe is electric
Jan 26, 2006
41,035
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RR1 Distopia 666 Discordia
The purpose of a union is to bite the hand that feeds it.

You may have an incorrect idea of the real hand that feeds you. Look on the end of your arm. Corporations do not feed, they never have and they never will. The purpose of a union is exactly the same as that of the corporation, extraction, the difference being the union is your extraction engine not thiers.
 

TenPenny

Hall of Fame Member
Jun 9, 2004
17,466
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Location, Location
Let's think about it.

GM has already turned down any Canadian gov't help. This obviously means, GM is going to chop Canadian plants, in favour of US plants.

It really doesn't matter what the CAW does, says, or thinks, GM's future in Canada is extremely bleak.
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
23,106
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Let's think about it.

GM has already turned down any Canadian gov't help. This obviously means, GM is going to chop Canadian plants, in favour of US plants.

It really doesn't matter what the CAW does, says, or thinks, GM's future in Canada is extremely bleak.


You beat me to that point by 5 minutes...;-)
 

Tyr

Council Member
Nov 27, 2008
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You beat me to that point by 5 minutes...;-)

It seems to have scared the crap out of the Unions

CAW reopening contracts










Union ready to talk `concessions' with automakers; says it can't ignore their `precarious financial state'

Jan 30, 2009 04:30 AM

Tony Van Alphen
Business Reporter

The Canadian Auto Workers will start negotiations for concessions with General Motors, Ford and Chrysler early next week in efforts to keep the teetering automakers alive.
The union, which represents more than 25,000 employees at the three automakers, announced yesterday that bargaining committees will reopen their existing contracts for "extraordinary" talks to make sure labour costs are competitive with workers at the companies' U.S. plants who are also negotiating concessions.
"Labour costs clearly did not cause this worldwide crisis in the auto industry, and labour concessions cannot possibly solve that crisis," said CAW president Ken Lewenza. "But we can't ignore the precarious financial state of these companies, the extraordinary government offers of aid and our need to remain fully competitive for future investment."
Although Lewenza did not use the word "concessions" after meetings with the committees here, he acknowledged last month that workers face reductions in wages and benefits plus further job losses so the companies can qualify for multibillion-dollar loan packages from the federal and Ontario governments.
The companies are also tapping government aid packages of $17.4 billion in the U.S. to help them while they work on a massive restructuring that will shrink operations in both countries. A major slump in auto sales and a deepening recession in North America have left the three companies close to collapsing.
But after requesting immediate aid last month, GM of Canada Ltd. indicated in the last week that it doesn't need some $3 billion in repayable loans. But GM added it could seek the money again soon.
Ford Motor Co. of Canada Ltd. told the governments last month it needs a "standby" line of credit of about $2 billion, while Chrysler Canada Inc. wants $1 billion.
Lewenza added yesterday he doesn't envisage a situation where the union would break from historical matching or "pattern" contracts if one of them decides not to accept loans.
"Realistically at one point or another, they will all need money," he said. "Furthermore, we have no intention of breaking from the pattern and putting our members in a situation where they are competing against each other."
Lewenza said GM negotiators have been the "most aggressive" in pursuing talks, but the union has not decided at which company it will open bargaining.
GM has also provided little information on "benchmarks" in wages and benefits that would improve competitiveness so it can qualify for government aid, he said.
However, industry sources say special absence days of six weeks over three years; legal aid; tuition assistance and some health-care expenses are vulnerable when negotiations start. Furthermore, they say the companies could extend a current freeze in a cost of living allowance (COLA) and inflation protection for retirees.
Workers, who earn almost $34 an hour, agreed to a wage freeze, a temporary COLA cut and some reductions in benefits in a new three-year contract last spring.
 

Risus

Genius
May 24, 2006
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CAW can take a hike. They are the root of the problem. All the union leaders can think about is their own wallets. Unions should be banned....
 

TenPenny

Hall of Fame Member
Jun 9, 2004
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CAW can take a hike. They are the root of the problem. All the union leaders can think about is their own wallets. Unions should be banned....

Not like, say, top management, or investment bankers. Nope, union guys are evil because you know they still want their bonuses, even while the gov't bails out their employers....
 

Cannuck

Time Out
Feb 2, 2006
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It is quite simple. The CAW is betting the big three will close these plants regardless (which they will). Any severance packages will be based on current wages. To take a wage cut that will not keep the plants open and will reduce the severance payouts would be foolish. The CAW is looking after the interests of its members.
 

lone wolf

Grossly Underrated
Nov 25, 2006
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It is quite simple. The CAW is betting the big three will close these plants regardless (which they will). Any severance packages will be based on current wages. To take a wage cut that will not keep the plants open and will reduce the severance payouts would be foolish. The CAW is looking after the interests of its members.
If the Canadian divisions - legally separate companies - go bankrupt, what severance package can there be once the assets are liquidated?
 

Zzarchov

House Member
Aug 28, 2006
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If the Canadian divisions - legally separate companies - go bankrupt, what severance package can there be once the assets are liquidated?

Whatever there is will be divided on a ratio.

If they are owed if 100 million is raised and 200 million is owed, 10 to the workers. The workers get 5.

If 100 million is raised and 210 million is owed, 20 to the workers. The workers get 9.5 million.

Why take a paycut and get less of the pie if you don't keep your job anyways? But if they do, then the executives severance package becomes a bigger ratio.
 

lone wolf

Grossly Underrated
Nov 25, 2006
32,493
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Whatever there is will be divided on a ratio.

If they are owed if 100 million is raised and 200 million is owed, 10 to the workers. The workers get 5.

If 100 million is raised and 210 million is owed, 20 to the workers. The workers get 9.5 million.

Why take a paycut and get less of the pie if you don't keep your job anyways? But if they do, then the executives severance package becomes a bigger ratio.

Thanks for the lesson in distribution of assets ... though the question WAS rhetorical.