Wednesday, May 7, 2008

Chrysler pact may mirror Ford precedent, CAW says

BY TIM HIGGINS • FREE PRESS BUSINESS WRITER

"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 in a statement. "The CAW remains optimistic that negotiations with Chrysler will begin shortly."

The contract expires in September. Ford and CAW surprised the auto industry last week in announcing that a deal had been reached so early.

Chrysler executives met with CAW officials Tuesday, the union said. A Chrysler spokeswoman declined comment.

Tom LaSorda, a Chrysler president and vice chairman, first raised concerns about Ford's CAW deal in an interview with the Free Press last week.

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

In response, CAW President Buzz Hargrove told Bloomberg: "If they want to be competitive, maybe one less president, like most companies have, will help."

LaSorda shares the title of president with Jim Press.

Hargrove has said Chrysler and General Motors Corp. have pushed hard for the creation of a two-tier wage system, such as that approved by the UAW last year. The Ford deal avoids that.

GM and the CAW will begin negotiations Thursday, the union said.

"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 in a statement. "The CAW remains optimistic that negotiations with Chrysler will begin shortly."

The contract expires in September. Ford and CAW surprised the auto industry last week in announcing that a deal had been reached so early.

Chrysler executives met with CAW officials Tuesday, the union said. A Chrysler spokeswoman declined comment.

Tom LaSorda, a Chrysler president and vice chairman, first raised concerns about Ford's CAW deal in an interview with the Free Press last week.

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

In response, CAW President Buzz Hargrove told Bloomberg: "If they want to be competitive, maybe one less president, like most companies have, will help."

LaSorda shares the title of president with Jim Press.

Hargrove has said Chrysler and General Motors Corp. have pushed hard for the creation of a two-tier wage system, such as that approved by the UAW last year. The Ford deal avoids that.

GM and the CAW will begin negotiations Thursday, the union said.

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