CAW says Chrysler has not balked at Ford terms

Tue May 6, 2008 11:06pm BST
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DETROIT (Reuters) - Chrysler LLC has not given any indication to the Canadian Auto Workers that it will be unable to meet the terms of a deal the union won from larger rival Ford Motor Co (F.N: Quote, Profile, Research), the CAW said on Tuesday in a statement.

Representatives of the union and Chrysler executives met on Tuesday, two days after union members ratified a new contract with Ford.

"Chrysler made no commitment to begin early negotiations with the union, but did not indicate they would be unable to meet the pattern established last week at Ford," the union said. "The CAW remains optimistic that negotiations with Chrysler will begin shortly."

A Chrysler spokeswoman confirmed that the two sides had met, and would meet this week, but declined further comment.

"All we've confirmed is that we are meeting with them this week and that we are basically proceeding ... with them behind closed doors," spokeswoman Mary Beth Halprin said.

The privately held automaker, now owned by Cerberus Capital Management [CBS.UL], employs about 8,000 CAW members and assembles its Chrysler and Dodge minivans in Ontario.

Last week, Chrysler president Tom LaSorda was quoted as casting some doubt on whether Chrysler would be able to meet the terms of the Ford deal with the Canadian union.

"We have to be competitive," LaSorda told the Detroit Free Press. "And I'm not so sure the Ford deal was very competitive."

About 9,000 CAW workers on Sunday ratified a three-year contract with Ford that the No. 2 U.S. automaker said would improve financial returns on its Canadian facilities that include two assembly plants.  Continued...

 
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