I'm going to go out on a limb here and say that all this talk about unions is a moot point. From most reliable sources GM will file bankruptcy in roughly five weeks. Once that is done, the UAW and CAW are finished, because Chrysler and Ford will not meet their demands as the only remaining union employers. The union will either cease to exist, or Chrysler will follow with a bankruptcy of their own, and then the union will cease to exist. In either case, the unions are finished.

MOPWR2U

 

^^^^^Agreed.

 

Chrysler does not have the liberty of waiting around to see that happen. Remember, Chrysler was given 30 days (instead of the 60 given to GM) to forge a deal with Fiat or else they would most likely be liquidated because they don't have the cash to keep operating. It's widely known that unless major concessions are given by both the Union and it's suppliers that Chrysler is not going to be a viable company capable of standing on its own.

The Union has put negotiations with GM on hold temporarily to address the more pressing issues with Chrysler since the clock is ticking on their 30 day time period.

 

The Letter Sent from Chrysler CEO Bob Nardelli and President Tom LaSorda to Members of the Canadian Auto Workers Union:

Dear Employees,

Today, we are at a crossroads in the history of Chrysler. Let’s take a look at what’s happened in the past few weeks.

On February 17 and February 20, Chrysler submitted its Viability Plan to the U.S. Treasury and U. S. Administration; and to the Canadian governments, respectively.

On March 30, U.S. President Barack Obama stated that Chrysler’s Viability Plan was unacceptable. “It's with deep reluctance but also a clear-eyed recognition of the facts that we've determined, after careful review, that Chrysler needs a partner to remain viable.”

He went on to state: “I'm committed to doing all I can to see if a deal can be struck in a way that upholds the interests of American taxpayers. And that's why we'll give Chrysler and Fiat 30 days to overcome these hurdles and reach a final agreement -- and we will provide Chrysler with adequate capital to continue operating during that time. If they are able to come to a sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed. But if they and their stakeholders are unable to reach such an agreement, and in the absence of any other viable partnership, we will not be able to justify investing additional tax dollars to keep Chrysler in business.”

U.S. President Obama has made it clear that our company must attain competitive labour rates: “Now, what we’re asking for is difficult. It will require hard choices by companies. It will require unions and workers who have already made extraordinarily painful concessions to do more … It will require efforts from a whole host of other stakeholders, including dealers and suppliers.”

Also on March 30, the Honourable Tony Clement, Minister of Industry, said, “While the restructuring plans represent progress, they do not go far enough to ensure the long-term viability of these companies. Therefore, we are not certifying their proposals. Together with our U.S. counterparts we believe that further fundamental changes are needed.”

Just this week, Fiat CEO Sergio Marchionne has made it clear that an alliance is contingent on the UAW and CAW meeting transplant all-in labour rates: “Absolutely, we are prepared to walk. There is no doubt in my mind,” Marchionne was quoted as saying. “We cannot commit to this organization unless we see light at the end of the tunnel.”

The Canadian government has been very supportive of our viability, providing a loan of $1 billion (CDN, $750 million drawn to date), with an agreement to provide additional support in proportion to the loans received from the U.S. Treasury.

On April 14, the Canadian governments, both federal and provincial, invited the CAW and Chrysler to attend a meeting in Toronto where they laid out four specific guidelines that must be met for providing further financial support. Their “asks” were:
1. That labour costs be reduced to a level equal to those of Toyota Canada. We believe that a Canadian benchmark is the appropriate one for you to achieve. We ask that you jointly demonstrate to us that the agreement you reach attains this benchmark.
2. That Chrysler complete an alliance with Fiat that, in return for equity participation gives Chrysler access to Fiat management, Fiat technology, Fiat sales and distribution outside of NAFTA, and distribution of Fiat products inside NAFTA.
3. That Chrysler and Fiat submit revised plans to Canadian governments and U.S. Treasury based on appropriate assumptions that show clearly Canadian production, product mix, capital investment and R&D.
4. That Chrysler and Fiat commit to maintain Canada’s proportion of North American production and to invest over the medium term that same share of total capital investment and R&D expenditure in Canada.

Let’s keep in mind, the all-in labour costs at Chrysler Canada are $76 per hour while the Toyota Canada all-in rate is approximately $57 per hour.

While we have made some progress with the CAW, it falls significantly short of closing the $19 gap. And yet, as recent as Wednesday this week, the CAW continues to ignore this clear mandate from the government stating that they will not go any further. This unwillingness to work within the government’s guidelines jeopardizes the future of Chrysler and our operations in Canada.

We have made several proposals to the CAW to offset these costs, without affecting base wages and pensions. Some specific examples include:

Prescription drug dispensing fees, by eliminating the cap results in estimated savings of $2.16 per hour.

Elimination of out-of-province health care coverage (snowbirds), with employees and retirees assuming responsibility for any coverage results in a cost savings of $1.00 per hour.

The change from semi-private hospital room coverage to “ward” coverage saves an estimated $0.97 per hour.

Elimination of life insurance for current and future employees results in a cost savings of $1.54 per hour.

The reduction of shift premiums to 2.5 percent results in a cost savings of $.80 per hour.

By increasing health care premiums would save an estimated $1.04 per hour.

The elimination of non-traditional benefits such as child care, legal services, tuition reimbursement, dependant scholarships and extended health care coverage (chiropractic services, massage therapy, naturopath, orthotics, etc.) results in a cost savings of $0.73 per hour.

Unfortunately, the CAW has been opposed to these solutions – however, we are open to alternative ideas. Next week, we plan to meet with the CAW to attempt to reach an agreement that is acceptable to Fiat and the Canadian government.

The clock is running. Without labour concessions, Chrysler Canada’s manufacturing operations will not survive long-term. Thousands of good-paying jobs are in jeopardy, as well as the economic health of communities such as Windsor and Brampton.

Canada has always been an important manufacturing and sales market for Chrysler LLC. It represents the largest vehicle sales market for Chrysler outside of the U.S. and no other vehicle manufacturer has a larger portion of its total manufacturing in Canada than Chrysler.

However, these are not normal business circumstances and all Chrysler constituents have been asked to “break pattern” – employees, retirees, dealers, suppliers and others.

Time is very short. We have only two weeks before a final decision must be made. Let me be clear, our negotiations are about saving Chrysler Canada. We are coming down to the wire in the fight for our company’s survival – and we need your support.

Bob Nardelli

Tom LaSorda


I don't know anybody that gets all that sht. No wonder the Auto manufacturers are in trouble. Executive pay is just a drop in the bucket compared to that. Maybe those union guys deserve what they are getting paid if they can talk somebody into paying for cchiropractor visits and massages.

 

Thanks for posting that letter. I think this one paragraph pretty much sums it up. The unions are finished.

 

Losing a warranty is part of it. Paying for the extended warranty is fine, it is with a seperate entity and you can take your vehicle to any ASE certified tech/shop. As far as the factory warranty, I knew I could lose that, it was one of the risks I weighed before buying the truck. If the government backs these warranties, which I am opposed, where would I have to take my truck to get service? How many Chrysler dealers do you think will be around?

I'll just drive the wheels off of it and buy what is available when it is time, if Dodge Ram is an option, I'll probably get another one.

Unions are a problem to me in that you do not get the work the companies are paying for, the quality of work is usually less, less productivity, more cost. If the structure keeps the wages and benefits, but the workers will be held responsible, like I am in my line of work, that would fix alot.

I'm not clumping all union workers together, in my experience unions collect dues and make it really difficult for someone to lose their job, this keeps a guanteed revenue flow for the unions. Let the guy go who isn't in a union and work them to death because we won't get pressure from the union, I would want that call either, but I wouldn't be afraid of it.

If it is possible to respond to the letter, I would ask how much per hour labor costs would go down if executives took a 10-15% pay cut, as they clearly have not earned their pay either.

I have instructors, new hires, that feel it is their god given right to be there. Two people found out that productivity is required to maintain good easy money, the hard way. The meeting on monday just might include a stack of resumes to show these guys that many people are just waiting in line, do your job and the line never advances. It becomes an epidemic when workers see others getting away with it "so I can too". That is what the unions breed, fix that part of it and I think all companies will have a better product.

My .02

Nick

 

Purchased a '09 Laramie Dec. 23 and am not too worried about the warranty, but of course will use it if it is there.

As far as the labor front goes with respect to the unions. Have a buddy, who a few years ago did a labor study between a telephone company here in Alberta and a communication company in Japan. Difference was... The non unionized company in Japan, which operated at a efficiency rating of nearly 90%, rewarded their hard workers and productive workers with bonuses, such as trips, cash, further education op.'s, and merchandise. If a worker was not as productive they were kept on in a lower capacity or terminated. Now, the unionized company here was struggling at 43% efficiency, and being told that the workers needed a raise due to their good work. Kinda like, reward us now and we will show you how good we can do later, not we will show you now and then you can reward us later.
I still won't buy products made in Japan(with out knowing about it anyways), but do admire their labor mentality

There I'm done
Sqrl6969

2009 Laramie, quad cab, Austin Tan two tone,Buckets,Nav,skid plates, Hemi.
Have on order the hard bed cover,bed rug, full flared fiberglass running boards.

 

Both very good points.

Let me explain my point of view and what I see is wrong with the situation:

I am a (proud to have served) retired Navy Chief. I truly loved serving my country. Graduated early and enlisted when I was 17 straight out of high school (grew up in farm country with no future in sight). I only retired to spend more time with my 3 kids (4, 6, and 13 at the time) instead of deploying for seven months and being home for ten. I have since coached my 6 year old's soccer team and my 4 year old's t-ball team (things I could never commit to before).

Currently, I am an independant contractor (consultant) for the Navy, LOVE my job, and have a minimum ROI (return on investment) of 150% of my company's cost (not what I actually make which is MUCH less). I take my job VERY seriously and want to make sure that the Navy gets the "best bang for the buck". If my minimum ROI=X, last year I saved the Navy X multiplied by 5.375. I do not get a bonus, my company does not get an increase in pay, we are a fixed price contract. So why do this? Why be an "over-achiever"? BECAUSE I TAKE GREAT PRIDE IN WHAT I DO!

The problem, as I see it, is that people are all listening to WII-FM (Whats In It - For Me) and not concerned with doing a good job just BECAUSE IT IS THE RIGHT THING TO DO!

I sleep soundly at night knowing that I am giving 110% and doing everything within my power to get things done correctly. It is time that more people do the same instead of wondering how much they can milk the cow before it moos.

That being said, if Chrysler and GM fail, they fail. So be it. Everyone from the top down is responsible.

 

$76 an hour...thats over $3000 a week. That is costing Chrysler over $150,000 per year per employee...I am missing something here!!!

No wonder our auto industry is in trouble...no wonder our vehicles cost so much.

 

I read the top UAW Chysler workers pay is $65.00 an hour.
Toyota's top worker around $40.00 an hour.

Toyota pay scale is lower largly because they are in the southern states.

I am loosly quoting.

Ford uses UAW workers. They are doing OK.

There are many things besides the UAW killing American car companies.
Trade deficit. Tax breaks overseas companies get. NAFTA, CAFTA, etc.
All politically designed for relations that are not fair to the US worker.
Auto a bigger fish getting media attention. US plants have been closing doors and moving overseas for years.
Buy something made in America, its not easy.

Alabama gave Mercedes the land their plant is on. That part of Alabama is an International Trade Zone. One example.

Read another article that explained the Toyota Tundra was more American parts and labor than any American truck.

Put a remote tailgate lock in mine the other day.
Mopar 82211668AB
Made in Hondurous.
Printed in the USA.