Chrysler Canada and its union are set to re-enter labour negotiations today in a final attempt to reach an agreement that could save the company from bankruptcy or even liquidation, and the two sides have never been farther apart.
And with both federal Industry Minister Tony Clement and potential Chrysler partner Fiat saying the company will have to lower labour costs by $19 an hour to remain competitive, Chrysler has little room to manoeuvre.
Because of this, the Canadian Auto Workers’ insistence that they will stick to the pattern established in a deal reached with General Motors Canada in March, which reduces that company’s labour costs by about $7 an hour, may seem futile.
But analysts say the union does have some wiggle room.
