TPW 9/17

[rpepka]

City braces for possible CAW strike

Economy could be 'devastated'

By Claire Brownell, The Windsor Star September 14, 2012



As the CAW prepares for a possible strike, the rest of Windsor is preparing for the economic blow that would come with it.

"If you go around the city and you talk to retailers, large and small, and you talk to people in the service industry, they'll tell you for the last month, monthand-a-half, as discussions began, their spending has come to a stop," said Windsor mayor Eddie Francis. "There's a lot of angst, anxiety. People are trying to figure out what next week is going to bring."

There's still time for the union to reach an agreement with at least one of the two Big Three auto companies with a major presence in Windsor but, for now, the CAW is poised to grind production to a halt if talks don't progress by Monday's deadline. Because the union has vowed to strike at all three companies, rather than targeting one, this time a strike could last longer and cut deeper than usual.

Tony Faria, director of the Office of Automotive Research at the Odette School of Business, said picking one target speeds up the strike by putting pressure on the affected company to put its employees back to work to catch up on the competitive advantage the other two gain. With a strike at all three, however, negotiations could drag on.

Faria estimated about 20 per cent of the Windsor and Essex County workforce is tied to the auto industry. A strike would mean strike pay at a much lower rate for thousands of Ford and Chrysler workers, no pay at all for workers at automotive supply chain companies who would be laid off until production starts again, and a drastic drop in revenue for all the businesses those workers normally frequent.

"That's an awful lot of workers, an awful lot of paycheques. The effect on the local economy could be very significant and could be felt very, very quickly. Most people do not have a lot of savings to fall back on," Faria said. "It could be quite devastating if the strike drags on for a while."

Windsor is no stranger to the ups and downs of the local economy, however.

Many businesses and organizations - including CAW Local 444 head Dino Chiodo himself - did not respond to or declined requests for comment on how a strike would affect the region, saying it was premature given the ongoing negotiations. But those that did respond said they're prepared for a sudden drop in customers and a spike in people who suddenly can't pay their bills.

EnWin Utilities spokeswoman Barbara Peirce Marshall said the organization works one-on-one to make arrangements with customers who have a sudden cash flow problem because of something like a strike. EnWin directs people in need to programs with social service agencies, she said.

"We're always prepared for calls. Windsor's been through some pretty tough times in the last few years. We've definitely ramped up our service to the point where we're prepared for any number of calls during the day."

Tepperman furniture store's partner and secretary treasurer Noah Tepperman said having an in-house financing system helps the local store be more flexible at times like this.

"When there's a work stoppage like this, you understand it's really an extraordinary situation. It's not the kind of thing where someone's decided to up and move to Alberta without giving you their forwarding address," he said. "We want to make sure it doesn't negatively impact our business, but we also understand the pressure it puts on people and we'll do everything we can to keep that in mind."

Faria said even if the CAW and the auto companies reach an agreement that appears to be a good deal for the CAW, it may signal bigger problems down the road. He said the union should take Chrysler CEO Sergio Marchionne's threat to move production out of Canada seriously.

"I appreciate they want to do the best for their workers, but the problem is if they squeeze a little bit too much out of these companies in this contract, getting the best contract they can for their workers, the companies are going to continue the process that has been ongoing for a number of years now, which is moving operations out of Canada," he said.

"We've seen tens of thousands of CAW jobs disappear and a bad contract is going to just continue that."

cbrownell@windsorstar.com or Twitter.com/clabrow
© Copyright (c) The Windsor Star

Read more: http://www.windsorstar.com/business/...#ixzz26SWDLRLz

[rpepka]

Moody's says CAW strike would be 'painful' to Canadian economic growth
By Ross Marowits, The Canadian Press | September 14, 2012

A debt ratings agency that covers the auto industry believes that even a short strike by Canadian auto workers could be "painful" and hurt the country's weak economic growth for months to come.

"Even a one-week walkout could jeopardize Canada's increasingly listless growth, shaving 0.25 percentage point from September GDP while disrupting North American supply chains and retail spending into the fourth quarter," Moody's Analytics senior economist Mark Hopkins said Friday.

Automakers are seeking to reduce labour costs because health-care costs are rising and the strong Canadian dollar is eroding competitiveness.

In June, General Motors announced it would shut down its consolidated plant in Oshawa, Ont., next year, a move that will eliminate 2,000 direct jobs. The planned closure comes as the big automaker restarts production at the former Saturn assembly plant in Spring Hill, Tenn.

Moody's said the auto industry is one of "the few bright lights on the Canadian manufacturing landscape."

Transportation equipment accounted for more than three-quarters of the growth in Canadian manufacturing in the 12 months through June. The resurgence of the Big 3 has helped drive a sharp acceleration in Ontario manufacturing, more than offsetting the slowing pace of shipments from Quebec and British Columbia, Hopkins wrote in a report.

"Improving auto sales in the U.S. have also been a key component of demand growth for Canada's largest trading partner. Stalling this momentum, even temporarily, would be costly."

Meanwhile, ratings service DBRS said it believes a strike won't likely be long or have a significantly harmful effect on General Motors or Ford.

DBRS said the risk of a strike is "manageable" even though it will have some impact on the automakers' U.S. operations because of the inter-relationship between the operations on both sides of the border.

"We don't expect a prolonged strike and even if the strike were to commence, the impact on the company and consequently the effect on the rating is not that material," he said during a conference call after it raised the ratings of the two companies.

The ratings agency upgraded the ratings of both General Motors and Ford to BBB (low) from BB (high) due to their improved profitability, strong financial positions and strengthening North American operations.

DBRS said the U.S. automakers are mainly profitable because of past concessions from hourly workers. But abandoning efforts to reduce the $15 per hour cost differential between the Canadian and U.S. operations would make them uncompetitive with offshore rivals, especially from Japan and Korea.

"Everybody's quality of cars is narrowing and everybody's design and change in products is competitive so you have to always keep an eye on the cost structure," Hon said.

He said the automakers "learned the lesson" of past talks and can't give more favourable contract terms in good times and then ask for givebacks in bad times.

The Big 3 U.S. automakers are continuing tough negotiations with the Canadian Auto Workers union as a countdown continues to a threatened strike at 11:59 p.m. Monday.

The union has offered wage and benefit concessions for new hires but is refusing demands for reductions for existing employees.

"To date, little success has been made, with the union and the companies still very far apart on a number of fundamental issues," the CAW said Friday in a message to its members at Ford, General Motors and Chrysler.

It added that each of the three companies "remains steadfast in their determination to force deep concessions on both existing and future workers."

"The CAW is equally determined to resist these demands and negotiate a fair settlement that reflects the best interest of our members."

The union has warned that it may target more than one of the U.S. automakers if negotiations fall through.

GM only produces a few models at its sole remaining CAW-affiliated assembly plant in Oshawa, Ont.

Ford employs less than 5,000 workers at its assembly plant in Oakville and two engine assembly facilities in Windsor.

University of Windsor professor Tony Faria said the impact of a strike would be much greater on Chrysler, which derives about a quarter of its production from Canada. All of its minivans are made in Windsor, along with several key sedans and vehicles.

"Chrysler is looking at razor thin profits. They've got good prospects for this year and next year but the only way their profits are actually going to materialize is they have to be producing vehicles," he said in an interview.

Faria said Chrysler CEO Sergio Marchionne is a tough negotiator but he can't afford a shutdown.

"Chrysler is only now getting into a profitable situation so this is a bad, bad time for Chrysler to be shut down."

[rpepka]

AW 'hopeful' one of Detroit 3 to accept its new hire proposal
10:59am EDT

* One automaker seen close to agreement on new hire plan, CAW

* Talks continue with all three automakers, one "further along"

* CAW deadline for strike late Monday night

TORONTO, Sept 15 (Reuters) - Two days ahead of a strike deadline, the Canadian Auto Workers union said on Saturday that it is hopeful one of the Detroit Three automakers will accept its proposed concessions on compensation for new hires, clearing the way for contract negotiations to address other issues.

The union, which represents some 20,000 workers at Fiat SpA's Chrysler Group LLC, Ford Motor Co and General Motors Co, is trying to reach three-year agreements before a contract and strike deadline of 11:59 p.m. EDT on Monday (0359 GMT, Tuesday).

"We have a meeting scheduled for 11 a.m. with one of the companies that we're hopeful we can conclude the discussions on our proposal, with respect to the new employee, and then move full speed from there to try and get the rest of the issues cleared up," CAW National Secretary-Treasurer Peter Kennedy told Reuters. He did not name the company.

"In the case of at least one of the companies, you can see the finish line. That's just on this one issue. There's still a lot of outstanding issues. I wouldn't want anybody to think that we're close to a deal here."

On Thursday, the CAW offered the automakers concessions on wages and pensions for new hires, yielding ground that might not overly upset current union members who must ratify any contract agreement.

In return for the concessions it offered, the union wants automakers to commit to investing in Canadian plants and allocating new product, ensuring members' job security.

Under the CAW proposal, new hires would start at lower wages than the approximate C$24 ($24.78) an hour they currently get and be paid less than current workers for a longer period of time.

This is the so-called "two-tier" wage scale that the three Detroit automakers and the United Auto Workers in the United States have used for the past several years to bring labor costs closer to those of foreign automakers.

The CAW is adamant that new workers must over time reach the same pay-scales as existing workers. It may be willing to extend its "earn-in," the time it takes new hires to reach the highest end of the pay scale, from six to as many as 10 years, a union source close to the talks told Reuters earlier this week.

"It's critical to moving forward as we've been saying from the outset. We're prepared to discuss and be flexible and entertain alternatives - except a permanent two-tier, second-class worker," Kennedy said.

Current employees do not contribute to their pensions but under the union's proposal, new workers would do so. The new workers still would be entitled to a defined-benefit pension, not a defined-contribution pension.

The talks, which began last month at a downtown Toronto hotel and are now going around the clock, have been challenging, with labor costs a key sticking point.

Automakers adamantly argue that Canadian labor costs are the highest in the world and must drop to match those of the UAW or future production and investment will be put in question.

The union counters that its members deserve some payback from the now-profitable automakers after the concessions they made in 2009 during a North American auto sector meltdown that pushed GM and Chrysler into bankruptcy.

Canada's auto industry has suffered five plant closures and the loss of a third of its assembly jobs in the past decade as costs climbed along with a stronger Canadian dollar.

© Thomson Reuters 2011. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

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[rpepka]

UPDATE 2-Canada's CAW union says deals far off but Ford talks advance
7:04am IST

* CAW head says Ford talks "less controversial" than GM, Chrysler

* Talks to run with all three automakers through Sat night

* Companies adamant fixed costs must come down

* CAW deadline for strike late Monday night

* Lewenza says still time for deal before deadline

By Susan Taylor and Nicole Mordant

TORONTO/VANCOUVER, Sept 15 (Reuters) - Two days before a strike deadline, the head of the Canadian Auto Workers said the union has made more headway in contract talks with Ford Motor Co than with General Motors Co and Fiat SpA's Chrysler Group LLC, but that any deal remains far off.

Negotiations between representatives of the Detroit Three and the union, which represents around 21,000 of their workers, would go straight through Saturday night after all-day talks, CAW President Ken Lewenza said.

"I would like to say things are moving smoothly but they are not. The companies continue to suggest that fixed costs absolutely have to be reduced... Today is just a tug-of-war," Lewenza said in an interview.

The three automakers adamantly argue that Canadian labor costs are the highest in the world and must drop to match those of their workers in the United States, or future production and investment will be put in question.

The union counters that its members deserve some payback from the now-profitable automakers after their concessions in 2009 during a North American auto sector meltdown that pushed GM and Chrysler into bankruptcy.

Negotiators, trying to reach new three-year agreements, are racing against a deadline of 11:59 p.m. EDT on Monday (0359 GMT, Tuesday), when the CAW has said it will launch an unprecedented simultaneous strike at all three automakers unless it has a deal with at least one.

"It is fair that we are further ahead at Ford than we are with GM and Chrysler," Lewenza said.

"Negotiations with Ford are less controversial and more constructive. That does not mean, by any stretch of the imagination, that we have dotted the i's and crossed the t's."

Ford did not respond to a request for comment on Saturday. GM said it continues to have open and constructive talks and Chrysler said it would not comment on the status of the talks.

SEEKING AGREEMENT WITH ALL

At this point the idea is still to reach a deal with each of the three companies before Monday's deadline, CAW economist Jim Stanford said in an interview.

The union has broken with tradition this year by not selecting a lead company for talks. In previous years, talks with the other two companies would be temporarily suspended until an agreement was reached with the chosen automaker. That deal would then become a blueprint for pacts with the other two.

Earlier on Saturday, CAW National Secretary-Treasurer Peter Kennedy said he hoped a morning meeting with one of the companies, which he did not name, would lead to a conclusion of discussions on a union proposal regarding new employees so that talks could move onto other issues. Kennedy could not be reached later in the day.

On Thursday, the CAW offered the automakers key concessions on wages and pensions for new hires, yielding ground that might not overly upset current union members who must ratify any contract agreement. In return, the union wants automakers to commit to investing in Canadian plants and allocating new product, ensuring members' job security.

Under the CAW proposal, new hires would start at lower wages than the approximate C$24 ($24.78) an hour they currently get and be paid less than current workers for a longer period.

This is the so-called "two-tier" wage scale that the three Detroit-based automakers and the United Auto Workers (UAW) in the United States have used for the past several years to bring labor costs closer to those of foreign automakers.

The CAW is adamant that new workers must over time reach the same pay scales as existing workers. It may be willing to extend its "earn-in," the time it takes new hires to reach the highest end of the pay scale, from six to as many as 10 years, a union source close to the talks told Reuters earlier this week.

Current employees do not contribute to their pensions but under the union's proposal, new workers would do so. The new workers still would be entitled to a defined-benefit pension, not a defined-contribution pension.

The union also has said it could relax the "30-and-out" provision for new hires. Instead of being allowed to retire after 30 years under any circumstances, they would be able to retire after 30 years only if they were above a particular age.

TALKS TOUGH

The talks, which began last month at a Toronto hotel, have been challenging, with labor costs a key sticking point.

CAW workers at the Detroit Three earn an average of C$34 in a base hourly wage, compared with an average $28 for UAW employees, the CAW says.

Including benefits such as pensions, healthcare and overtime pay, the CAW's total average labor cost is about $60 an hour, according to the Center for Automotive Research in Ann Arbor, Michigan. That compares with $58 for U.S. workers at Ford, $56 for GM and about $52 at Chrysler.

The CAW says that the companies also want to permanently eliminate the cost of living allowance, move current and new hires to a defined contribution pension plan from a defined benefit pension plan, and eliminate the "30-and-out" pension.

The automakers have not publicly said how they propose to bring Canadian labor costs in line with those of the UAW.

Canada's auto industry has suffered five plant closures and the loss of a third of its assembly jobs in the past decade as costs climbed along with a stronger Canadian dollar.

Despite the many issues that need to be ironed out between the CAW and the Detroit Three over the next 48 hours if a strike is to be avoided, Lewenza, a veteran of many rounds of auto talks, said it could be done.

"I've seen us wrap up collective bargaining in a couple of hours once both sides understands that it's either this or a work stoppage," he said.

© Thomson Reuters 2011. All rights reserved.

[rpepka]

CAW talks progress with Ford, GM: Lewenza
September 15, 2012. 9:59 am • Section: Automotive, CAW



Union strike marshal Kim McMaster gets strike signs ready Friday, Sept. 14, 2012, at CAW local 173 hall in Windsor.(DAN JANISSE/The Windsor Star
While contract talks between the CAW and Ford and General Motors were moving forward Saturday, those with Chrysler appeared to have stalled with the union rejecting the automaker’s “final offer,” said CAW president Ken Lewenza.
“Chrysler indicated to us yesterday that was their rock bottom proposal and it wasn’t negotiated,” Lewenza said. The Auburn Hills, Mich., automaker’s demands haven’t changed “one iota” in negotiations, which were running against a Monday night strike deadline.
However, the union was making headway with Ford and GM negotiators on a number of key issues, including a longer wage progression for new hires, Lewenza said.
“I’m spending an equal amount of time on General Motors, and equal amount of time on Ford,” said Lewenza who has been scuttling between meetings with the two automakers. “Chrysler hasn’t shown much interest at all in terms of getting a deal at this particular time.”
Lewenza stressed no formal proposals have been signed with any of the automakers.
“These are constructive conversations, and I sense at Ford Motor a different attitude in terms of trying to come to a conclusion on some very tough issues. That’s doesn’t mean we’re done.”
The CAW has scheduled a press conference for noon today in Toronto to update their members on the negotiations.
“There’s a lot of anxiety out there and we want to assure our members that we are working like heck on their behalf,” said Jerry Dias, assistant to Lewenza. “We’re going to focus on trying to carve out a deal with the companies that are listening to us and use that agreement to set a pattern.”
Ford, he added, has been the most “respectful,” at the bargaining table,” he said.
The CAW is threatening to strike all three Detroit automakers if the two sides fail to reach a tentative agreement by the deadline of 11:59 p.m. Monday.
The Detroit Three have said the CAW must match and lower its labour costs with those at their UAW plants or risk jobs and investment in Canada.
A key stumbling block involved compensation for new employees, the union said. While the companies want a UAW-style two-tier system that permanently keeps new hires at a lower wage level, the CAW proposal would lower the current starting rate of $24 an hour and lengthen the six-year progression to wage parity with active workers.
Both sides have said they were prepared to work around the clock to reach a deal that would affect about 20,000 autoworkers at Detroit 3 plants in Windsor, Oshawa, Oakville and Toronto.

[NYBERB]

TORONTO, Sept. 16, 2012 -- /PRNewswire/ - The CAW will be holding a press conference today, Sunday September 16, at 12-noon, downtown Toronto to give an update on the status of negotiations with General Motors, Ford and Chrysler.

Press conference:

Sunday, September 16 at 12-noon Sheraton Centre Hotel, City Hall Room, 2nd floor 123 Queen Street West, Toronto, ON Canada

Members of the media who wish to participate, but cannot attend in person are invited to call: 1-888-396-8064.

The union has begun preparations for a possible strike at any company without a deal by the deadline of September 17 at 11:59 p.m.

Talks kicked off on August 14-15 in Toronto.

The CAW represents approximately 21,000 workers at General Motors, Ford and Chrysler.

SOURCE Canadian Auto Workers Union (CAW)

Order Reprint

Read more here: http://www.sacbee.com/2012/09/16/482...#storylink=cpy

[rpepka]

Press conference was moved to 4:00pm today.

[chu082011]

Originally Posted by rpepka

Press conference was moved to 4:00pm today.

Thank very much for sharing. It help me to think about for my ideals.

We also find them more same at:Secretary interview questions

Tks again and pls keep posting.

[rpepka]

The Canadian Press
Published Monday, Sep. 17, 2012 6:18AM EDT
TORONTO -- Negotiations between the Big Three North American
automakers and their Canadian workers are drawing closer to a line in
the sand drawn by the union.
The Canadian Auto Workers has threatened job action, possibly against
all three companies, if there is no agreement by midnight eastern time.
The CAW indicated Sunday it would focus its energies on negotiations
with Ford.
CAW president Ken Lewenza told a Toronto news conference that Ford has shown a "clear willingness" to reach a new contract and the union will work around the clock to achieve that, hoping to use a Ford agreement as leverage with General Motors and Chrysler.
Though Lewenza did not say if Ford has agreed to a union proposal that would lower wages for new hires but still allow them to progress to full pay over time, he suggested the company isn't dead set against the idea.
"Ford isn't philosophically opposed to anything other than to say, 'Folks, keep your costs down, keep it manageable,' and (then) we can share in the success with the company together."'
He said Ford "hasn't promised anything" but added the company has indicated it agrees in principle to some of the union's issues, which he said are being reviewed for possible "tweaking."
Chrysler appeared miffed by the union's move, a spokeswoman saying the company was "very concerned." G.M. and Recommend 1 Canadian Auto Workers' talks move closer to union strike deadline | CT... http://www.ctvnews.ca/business/canad...lks-move-close...
The automakers entered the bargaining round seeking a permanent wage reduction for fresh employees, similar to a
deal the companies reached in the U.S.
But the CAW has been adamant it will never agree to a pay structure that creates "two tiers" of employees.

[Fyx]

Good news I guess. From what I've read, as long as one of the companies reach to an agreement, the strike will be at least held off for a while.

HAPPY BUILD WEEK EVERYONE!!

[rpepka]

Originally Posted by Fyx

Good news I guess. From what I've read, as long as one of the companies reach to an agreement, the strike will be at least held off for a while.

HAPPY BUILD WEEK EVERYONE!!

Actually Ford workers will stay on the job, the other 2 will strike.

[rpepka]

CAW optimistic of a deal with Ford ahead of strike deadline


By Scott Deveau, Financial PostSeptember 17, 2012 10:09 AM



CAW National President Ken Lewenza, centre, and CAW National Secretary Treasurer Peter Kennedy, right, walk into the Canadian Auto Workers press conference to announce the union will focus its talks with Ford a day before a strike deadline.
Photograph by: Michelle Siu, The Canadian Press

The head of the Canadian Auto Workers says he is optimistic a new labour agreement can be reached with Ford Motor Co. Monday ahead of the union’s strike deadline shortly before midnight.

Ken Lewenza, CAW president, also said in an interview Monday he thought General Motors and Chrysler would be “hard pressed” to not agree to the framework established at Ford, and was hopeful that strike could be avoided at the Detroit Three this week.

Mr. Lewenza said the union held “very productive” around-the-clock meetings with Ford since it was established as the target company in the talks Sunday.

“Bargaining is about momentum, and over the course of the evening we’ve cleaned up a lot of stuff,” Mr. Lewenza said. “Our guys are feeling good.”

The union did, however, warn its members that they must be prepared to walk off the job if a deal is not reached by its strike deadline of 11:59 p.m. Monday. It also said that they may also need to strike at GM or Chrysler if those companies reject the framework of any agreement reached with Ford.

Ford is expected to offer another final proposal around 11 a.m. Monday. Mr. Lewenza said he would have a better idea then if a deal could be reached.

He said the union was also holding meetings with Chrysler and GM, but that those talks were far from where they needed to be at this point in the game.

Chrysler came out swinging Sunday saying it was “very concerned” by the choice of Ford as the target company given the significant reduction in its Canadian footprint in recent years.

Mr. Lewenza said it was not unusual for the automaker to make such comments after Chrysler did the same thing last year in the U.S.

But he also said he thought GM and Chrysler would be hard pressed to reject the framework established with Ford given it doesn’t raise fixed costs.

The Detroit Three have been trying in their talks with the CAW to narrow the gap between their labour costs in U.S. and Canada, which they argue is the most expensive jurisdiction in the world to produce their vehicles. This has only been exacerbated by the high Canadian dollar in recent years, they argued.

All three had been pushing to move workers into a two-tier wage system akin to the system in place in the U.S., which has been fundamentally opposed by the CAW.

Instead, the CAW has offered an alternative wage package which includes lowering the entry level wage for its members below the current $24 an hour, and extending the period of time it takes for them to reach peak pay levels of $34 an hour from six to 10 years.

It has also offered various amendments to its members’ pension plans in hopes of making labour costs more competitive and winning new work.

“Ford has been most receptive to the concept of the extended new hire grow-in and appears to recognize that the union will not accept a permanent two-tier workforce,” the union told its members Monday in a leaflet, in which it also argued that a two-tier system would divide the membership and make it more difficult to do their jobs side-by-side.
© Copyright (c) National Post

[Fyx]

Originally Posted by rpepka

Actually Ford workers will stay on the job, the other 2 will strike.

Not true, if GM/Chrysler agree to the framework of the deal they reached with Ford, they won't strike against them. For example, if Ford reaches an agreement, and GM likes to framework but wants to change a few things, CAW will not strike against GM or Ford, but instead will try to negotiate without a work stoppage. I read it several places, I'll try to find a link.

[Fyx]

* Strike deadline at just before midnight on Monday
* Talks continue with all three automakers, focus on Ford
* No deal yet with Ford, negotiations "fluid"
TORONTO, Sept 17 (Reuters) - Facing an end-of-day strike deadline, the Canadian Auto Workers union said on Monday it was hopeful it could reach a framework agreement with Ford Motor Co and avert a damaging work stoppage, but it warned that talks could still fall apart.
While focusing on Ford, the union was still in negotiations with the other two Detroit car companies, Fiat SpA's Chrysler Group LLC and General Motors, but both automakers are still demanding "significant concessions," the CAW said in a leaflet to its members.
The union, which represents some 20,000 workers at the Detroit Three automakers, chose Ford on Sunday as the lead company for contract talks, saying it has been most receptive to a CAW proposal to cut labor costs. The main issue is the industry's insistence that the CAW accept a permanent two-tier wage scale for new hires and veteran workers.
Without a tentative agreement before the strike deadline of 11:59 p.m. on Monday (0359 GMT, Tuesday), the union said it could stop work at one or all three automakers.
"We are optimistic though that with this latest development a strike can be avoided," the CAW said in the flyer, referring to its focused negotiations with Ford.
If the union reaches an agreement with Ford by the deadline, it will require a firm commitment from GM and Chrysler that they could work within that deal framework to avoid a strike at those two companies, CAW President Ken Lewenza said on Sunday.
"We do not yet have a deal with Ford, there are many details still to be worked out, but our hope is to establish a framework that we will then take to General Motors and Chrysler," the union said in the flyer. "Even at this late stage, negotiations are fluid and it is still possible that talks with Ford could fall apart."
Labor costs have been the key sticking point in negotiations that started last month.
All three automakers - with Chrysler the most publicly outspoken - have argued adamantly that Canadian labor costs are the highest in the world and must drop to match those of their United Auto Workers (UAW) in the United States, or future production and investment there will be put in question.
The CAW, however, seeing the profits once again being generated by the automakers, wants some payback for concessions its members made during the 2008-09 financial crisis.
The Detroit Three and United Auto Workers in the United States have used a two-tier wage scale for the past several years to bring labor costs closer to those of foreign automakers.
The CAW is adamant that its new workers, who start at 70 percent of veteran workers' wages, must over time reach the same pay scales as existing workers. In the United States, they do not.
It has proposed a lower starting wage as well as an extended "earn-in," the time it takes new hires to reach the highest end of the pay scale, from the current six years to 10 years.
A strike at all three companies would result in lost production of about C$200 million ($206.50 million) a day at the companies and their suppliers, according to the CAW.


See the bolded part above.