Ken Lewenza says that the CAW is not willing to give on wages or benefits in it’s talks with GM and Chrysler:
The Canadian Auto Workers union Thursday opened talks with GM to negotiate concessions that will keep Canadian car plants competitive with those in the U.S.
CAW president Ken Lewenza said the union believes it can maintain its existing wage and benefit package. He would not specify what other concessions the union was willing to make, but he acknowledged that one of the concessions made by the UAW was a five-day cut in vacation time.
If all the CAW is willing to give up is 5 vacation days a year, that would cut GM and Chrysler’s labour costs by a measly 2.5%, excluding non-wage benefits. If you include benefits, this cost saving is just over 1%. Won’t save a single job in Canada – or save GM or Chrysler. Which means MR. Lewenza’s members will all be out of a job.
Mr. Lewenza seems to think that maintaining “comparable” costs to GM and Chrysler facilities in the US is the issue. It isn’t. GM and Chrysler need their total labour costs, including legacy costs like pensions – to match those of Toyota, Honda, Daimler, BMW and Volkswagen in the US and Mexico – and potentially those of Chery and Tata in China and India, respectively.
And if for one moment it comes to be that the Government of Ontario is on the hook for the unfunded liability of the GM and Chrysler pensions (thanks Mr. Rae!!!!!), I want it clearly written into the federal equalization formula that that cost be excluded from the formula – because provinces like Newfoundland and Saskatchewan shouldn’t have to pay for such folly. And Canadian taxpayers should not have to pay to fund a pension plan that the workers who are supposed to get the largesse of the plan never payed into.
3 comments
Stan says:
6 March 2009 at 3:32 (UTC -7 )
What difference does it make how much Toyota workers get paid?
If they can pay $500.00 an hour be profitable that’s fine.
If GM has to lower their wages to $5.00 an hour to be profitable that’s fine too.
I notice the CAW didn’t offer to give up their free Viagra yet.
Some kid at the 7/11 takes a cut in his take home pay so the CAW can still sing ‘We Are The Champions’.
Gary says:
6 March 2009 at 6:00 (UTC -7 )
I think the taxpayers of Canada should take their lead from the CAW. If they are willing to contribute virtually nothing to save thier jobs so should we. As for the taxpayers of Ontario, I suspect that paying the pensions as you indiacte they are bound to do it way more rthan they should have to pay to the CAW clowns.
Sean Calder says:
6 March 2009 at 8:35 (UTC -7 )
I agree with you 110%!
The CAW is refusing to address wage and benefit concessions, so what does that leave?
I’m sure they’re flush with ideas of things the company can do, and things that the company can cut or end so that they don’t have to give up anything.
And also, “giving up” things from future bargaining does not count as a concession in my books.