Chrysler to keep 3rd shift at Ontario plant

By John McCrank

TORONTO (Reuters) - Chrysler has reversed a decision to cancel the third shift at its minivan plant in Windsor, Ontario, thanks to rising demand for the vehicles in the second half of the year, the company said on Friday.

The Canadian Auto Workers union said the decision to retain the shift will save 1,200 direct jobs in the southwestern Ontario city, which has been hard hit by the recession and has the highest unemployment rate of any major Canadian center at around 14 percent.

Chrysler recently emerged from Chapter 11 bankruptcy protection in the United States by selling most of its good assets to Fiat SpA. It said in March it planned to cut the shift as part of an effort to restructure its operations in the face of slumping sales.

"It's great news for 1,200 CAW Local 444 members out at the Chrysler plant and obviously the spinoff jobs that come with it," CAW President Ken Lewenza said in an interview.

"Obviously, it's a strong message from Chrysler that they plan to maintain their market share lead in the minivan segment."

Reid Bigland, president and chief executive of Chrysler Canada, echoed Lewenza's comments.

"This is great news for our employees, our community and our buyers," he said in a statement.

"Demand for our minivans in the second half of 2009 has been steadily rising and this decision will allow us to meet that demand."