CAW Union accepts cuts in pay, jobs

CAW Union accepts cuts in pay, jobs
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Canadian Auto Workers members at Chrysler Group's Brampton plant near
Toronto changed course Sunday, overwhelmingly voting to accept a pay cut and
the outsourcing of jobs in hopes of ensuring that the facility not only
remains open but also is expanded.

The approval by CAW Local 1285 comes after a vote last month by members to
reject the demands by the company that included the elimination of so-called
premium pay -- money for about 40 minutes each day for time not spent
working -- and allowing about 40 janitorial jobs to be outsourced.

The premium pay was a perk, negotiated during better times, that the company
wanted to eliminate. On average, it adds about $5,000 Canadian a year to a
worker's paycheck, the union said.

In exchange, Chrysler planned to make an investment at the facility worth
$700 million Canadian that would allow five types of vehicles to be produced
there -- up from three today -- including a new one in 2010.

But when the workers rejected the concessions, the company told union
President Buzz Hargrove last week that the planned investment was off the
table and the production occurring in Brampton could go elsewhere, union
officials said.

"That's much different than what people were thinking was going on while we
were having these discussions with the company," Bob Chernecki, assistant to
the CAW president, said. "Times have changed. ... We are in a hell of a mess
in the auto industry. There are lots of options for Chrysler. We should not
turn down a $700-million investment into a facility that's going to give us
another product."

He added: "It was important for people to hear that."

On Sunday, more than 2,800 members gathered at Pearson Convention Centre in
Brampton for the meeting, which members said was heated at times. The union
says that 78% of the production members and 95% of the skilled trade workers
voted in favor of the new agreement, which, the union says, goes into effect
when new products come to the plant. It makes the Chrysler 300, Dodge Magnum
and Charger.

"It's a positive step, and we applaud the vote," said David Elshoff, a
Chrysler Group spokesman. "There are a number of steps that need to take
place in order for the investment to go forward. The ratification by the CAW
is an important one."

He noted that before investment can occur at the Brampton site, the
company's supervisory board must approve it. Also, the company is looking
for assistance from the local government.

It's an uncertain time for the Chrysler Group. Last month, parent company
DaimlerChrysler AG said all options are on the table for the Auburn
Hills-based unit, including a possible sale. That ignited worldwide
speculation about its future.

"There is obviously a lot of uncertainty in the auto industry, and our
members continue to express frustration and concern about the future," Ken
Lewenza, chairman of the CAW's DaimlerChrysler master bargaining committee,
said in a statement.

Hargrove was slated to speak, but he ran into travel troubles and could not
attend the meeting.