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CAW Threatens to Strike Detroit's Big 3 Simultaneously if They Don’t Agree on New Contract

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The Canadian Auto Workers’ union (CAW) is the largest private sector union in the country with over 200,000 members. On September 5, it announced that it would strike General Motors, Ford and Chrysler, if contract talks do not progress.

This is the first time in its history that the CAW threatens to strike all three Detroit carmakers at the same time. The last strike organized by CAW was in 1996 against GM.

The union announced that all of its members will go on strike, since 99 percent of Chrysler Canada, 98 percent of General Motors of Canada and 97 percent of Ford Canada have voted in favor of the move.

“Our members support their bargaining committees and trust them to negotiate a fair settlement that shares in the success of the companies”, said CAW president Ken Lewenza.

If a deal is not reached by September 17, 11:59 p.m., when the current CAW contracts with the automaker expires then, as a leaflet from the union said, they will “shut down operations at all three”.

In the past, the CAW typically started negotiating with one carmaker, hoping that the other two would follow its lead. This time, though, it has changed its practice something that labor consultant and former GM labor negotiator Art Schwartz says, is “highly unusual”.

That’s because when the union focuses on one company, the threat is that its production will halt while its rivals will keep operating as usual. Schwartz adds that intimidating to strike all three gives them maximum flexibility: “They could strike everybody, but it doesn’t mean they’re going to.”

Ford spokeswoman Lauren More said that the company is “committed to working with CAW” in order “to improve the competitiveness of its Canadian operations”.

Chrysler Canada declined to comment and GM couldn’t be reached, according to Reuters. Nevertheless, all three have said that Canada is the most expensive place in the world to manufacture cars.

The union’s response is that the workers who helped those companies stay alive through the financial crisis should share some of their wealth now that they are profitable.

“The corporations are refusing to add any costs whatsoever”, said the CAW. “Instead, they insist on cutting costs from our existing agreements.”

Ford’s master bargaining committee chairman Gary Beck commented that the companies were putting “far-fetched” offers on the table and are asking for big concessions on the union’s part.

“We have been sitting down with all three companies and no one has taken the initiative to lead”, said Beck. “This will, hopefully, wake them up.”

By Andrew Tsaousis

Story References: CAW, Reuters


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9 Comments:

Three Blind Mice said... »September 07, 2012

Highly unlikely my wife and I will be purchasing any of those three brands, now and into the future, so strike away! Who cares?

Polyester Poontang said... »September 07, 2012

Isn't nice to be a blind blogger, you can be an idiot and nobody knows who you are.
It is easy to identify you as a US republican because you care about only yourself.
As a Canadian, and in the past I can remember singing God save the Queen Now I say God save the U.S.A. the country of hate.

Three Blind Mice said... »September 07, 2012

As much as I lament saying it...the party is over for Unions. They never adjusted and will now simply be replaced. Look around the world and see what happening; even Tesla has seen the light with their robotics. Read what's happening with manufacturers' like Foxconn; in fact read, if you can. Now, who is the idiot here? (And please stay in Canada.)

Polyester Poontang said... »September 08, 2012

The US has no attraction for me as you can feel the hate everywhere.......the US, the country of me first, is  a country that claims to have Christian values.......since when is fuck thy neighbour a Christian value..... is a country that is so far behind the rest of the world in education, health care, quality of life, and even exceeds the middle east in internal discrimination.
You chose Three Blind Mice......perfect......were you thinking of Romney, Ryan, and Norquist?

Trilo_g said... »September 08, 2012

What is it that the union brings to the table? What is the value they add? Could the automakers be able to train workers without the union? Could they build as good a car?

After having money losing years, the automakers are beginning to recover and recoup those losses. Will the unions automatically make consessions if the automakers again lose money?

Oz said... »September 08, 2012

Stupid unions and workers - you got jobs and your company finally start to earn mony and they'r going on strike?!...

Please sit down said... »September 08, 2012

Wow what a foolish pompous comment, you call him an idiot yet you "insult" him like some bigot because he doesnt agree with you...really whos the republican here??.....the bottom line is that these unions are draining the lifeblood from these companies Dont like my answer? who cares its called an opinion get one or go home. While america and canada mind you wrestle high unemployment and decreased wages these over payed uneducated ignorant blue collar simpletons (yes I said it) with little no skill outside of things "anyone" can be trained to do get pay increases and phenomenal employment terms simply because they keep going on strike and complaining is this some joke........say what you want but they are useless parts of todays economy........and reason enough for people to not buy from the big 3......oh and fyi if your going to knock anonymous bloggers at least have the balls to not be a hypocrite....

Polyester Poontang said... »September 08, 2012

Thanks for confirming my observation.

Earl said... »September 09, 2012

 You are speaking of blind blogging and yet your ID is "Polyester Poontang"? Come on man. No one is going to take anything you say seriously.

As a Canadian you should look at what is happening in the USA. Every auto manufacturer who can is going south. The writing is on the wall whether Canadians wants to see it or not is of no consequence.

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