CAW left in limbo on auto aid
Written on February 8, 2009
The Canadian Auto Workers union is still awaiting details on terms of government loans to struggling vehicle makers here and the outcome of union negotiations in the U.S. before opening talks on concessions.
CAW president Ken Lewenza said yesterday the union had hoped to start talks with General Motors, Chrysler and Ford earlier this week but the Detroit Three have not released aid terms and the United Auto Workers has not said how it will lower labour costs in the U.S.
"It never happened," he said. "Our point is there is no sense in talking until we have seen the terms and conditions for the loans from the governments and what the UAW will do. We haven’t heard much."
GM and Chrysler, in deep financial trouble, are seeking billions of dollars in loans from governments in both countries. Ford has not sought immediate aid but wants a standby line of credit.
Among conditions, the Canadian and U cash advance payday loan.S. governments have stressed are that automakers must lower labour costs to the level of non-union auto plants.
"We still don’t know what the benchmarks are," Lewenza said.
Lewenza, who represents about 25,000 workers at the three firms, said he was surprised with the lack of data on labour talks in view of deadlines during the next two weeks for automakers to submit restructuring plans to governments.
Meanwhile, Gerald Fedchun, president of the Automotive Parts Manufacturers Association, said he pressed federal officials this week to begin providing aid for suppliers via the Export Development Corp.
"The money hasn’t start flowing and smaller companies need it right now or there won’t be anyone around when it’s available," he said.
Filed in: finance.