Chrysler, Fiat Deal Once Again Squeezing the Workers

Anyone else notice that most of these negotiations from the auto industry involve squeezing the workers? Nothing about modifying trade agreements or bad cars or their supply chain.....

Nope, the latest demands from Fiat involve wages and retiree health care benefits:

People close to the talks, however, said the union’s health care trust would most likely end up owning more than 20 percent of Chrysler.

That could make the trust, for a time, the single-largest stakeholder in the automaker.

The proposed alliance with Fiat would give the Italian firm an initial 20 percent stake in Chrysler, with an opportunity to increase its ownership to 35 percent.

The union is also in talks with General Motors about a similar arrangement to allow G.M. to contribute stock to finance half of a $20 billion health care trust for its retirees.

But the U.A.W. is concentrating now on Chrysler, which is rapidly running out of time to meet all the restructuring requirements out by the Obama administration.

Chrysler’s alliance deal with Fiat cannot be completed until the U.A.W. settles the health care issue, according to people close to the talks.

In addition, the Fiat deal is being held up by the lack of progress in discussions between Chrysler and the Canadian Auto Workers to substantially cut labor costs at the company’s Canadian operations.

I'm really wondering if all of those union members are regretting their vote decision last November.

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A President McCain would not even have allowed it to get this far. He would have let Chrysler die off months ago and let the UAW and salaried workers fend for themselves. At the very least, he would have forced the bankruptcy sooner. Obama, sad to say, was the least of the two "evils."

As for trade deals, the Administration isn't going to renegotiate their book of trade deals just to save a single car company nor an industry. Imagine if a country came to us and said they wanted to start up their car industry and wanted more access to our market nevermind access to theirs. We would say no. Look, we don't have free trade, never really had it, and I suspect we really never will.

no choice

I knew it was really no choice for President but I don't think McCain could have moved faster than this.


Do you know now Obama is doing illegal immigrant raids and giving them work Visas?

There is never any mention that these illegals have jobs U.S. citizens really need in any of these stories.

There is a headline on CNN and the guy is clearly working in a reasonably paying blue collar job, not a mention that an American could really use that job.