OTTAWA (AFP) -- Canadian Auto Workers union head Ken Lewenza on
Wednesday slammed reported threats by Fiat that it may walk away
from a tie-up with U.S.-based Chrysler unless unions agreed to
lower wage deals.
In an interview with Canada's Globe and Mail newspaper, Fiat
Chief Executive Sergio Marchionne said he would scrap the merger
unless Chrysler unions agreed to match the lower costs of Japanese
and German-owned plants in Canada and the U.S.
"Absolutely we are prepared to walk. There is no doubt in my
mind," Marchionne said in the interview, published Wednesday. "We
cannot commit to this organization unless we see light at the end
of the tunnel."
Because of the lack of progress on labor negotiations,
especially on the Canadian side, there is only a 50-50 chance the
partnership will be formed, Marchionne added.
Lewenza responded he was "surprised" and "disappointed" by the
comments, and accused Fiat of trying to exploit the weakness in the
union's collective bargaining position.
"There's no question that we need the Fiat deal," he said.
"But there's also no question that you (Fiat) walk away from
this (buying) opportunity as a result of labor costs in Canada,"
which he said amount to less than seven% of the cost of
manufacturing a vehicle.
Chrysler and Fiat should instead focus on resolving
multibillion-dollar issues with U.S. bondholders and private
investors, he said, publicly extending an invitation to Marchionne
to meet with the CAW's bargaining committee.
"I want to give him (Marchionne) a great deal of credit for
turning around Fiat Corporation, but he didn't turn around Fiat by
attacking workers in Italy," Lewenza said.
"He restructured the company and he introduced new products that
consumers wanted."
The CAW and Chrysler are to resume negotiations next Monday.