Chrysler workers vote to accept pay cuts
TheStar.com - Business - Chrysler workers vote to accept pay cuts
Would cost about $5,000 each per year if automaker puts $700 million into plant

March 12, 2007
Tony Van Alphen
Business Reporter

Worried workers at the DaimlerChrysler Canada assembly plant in Brampton have overtuned an earlier decision and accepted potential concessions that could cost them about $5,000 each annually.

The reversal yesterday, at a packed membership meeting of Canadian Auto Workers Local 1285, came after the company signalled it would look elsewhere to make major investments in view of union rejection of the same concession package less than three weeks ago.

Workers voted overwhelmingly to accept the package of workplace changes including elimination of premium pay if the company invests $700 million for a fifth model at the plant.

Union leaders sought the vote when the Chrysler said it would not only transfer the model and investment to another plant but expand that operation's ability to make the same vehicles as the Brampton facility.

"It was definitely a hard decision for the membership to make," said Ardis Snow, the local's plant chairman. "But I think they looked at the company's response to the `no' vote and felt it was a real threat to their long-term future."

Workers voted 1,420 to 399, or 78 per cent, in favour of the package that would mean loss of a pay premium for 48 minutes a shift. They have received the premium despite not working the time since the plant moved from two to three shifts a few years ago.

The premium can range between $115 and $150 a week in gross pay depending on job classification, or an average of about $5,000 annually. Other changes include the contracting out of 44 janitorial jobs and the reorganization of work duties around team concepts.

The package is part of a "shelf agreement" that will only apply if DaimlerChrysler decides to build the fifth model in Brampton. The company's parent DaimlerChrysler Group will decide soon where to invest about $700 million in "Project X."

Industry insiders expect it will build the high-end, low-volume Imperial sedan in the summer of 2009 on the same platform as four other models in Brampton.

The membership's reversal followed a lively 90-minute meeting where several angry workers clashed with union leaders about not respecting the original decision.

"No is no," said one member.

One worker reminded union leaders that the process played loose with the CAW's constitutional rules regarding second votes. Another said the agreement conflicted with the CAW's own policies against concessions or reopening of contracts.

Workers surprised leaders of Local 1285 and the national union by rejecting the package on Feb. 19 in a vote inside the plant. It followed an off-site meeting the previous day that attracted only about 500 workers. The plant employs 3,400.

Local union president Vince Bailey said other members who did not attend received conflicting and inaccurate information from the meeting before voting.

At yesterday's meeting, Bob Chernecki, assistant to national president Buzz Hargrove, also said circumstances had changed during the last week. Frank Ewasyshyn, senior VP of manufacturing for the Chrysler Group, indicated the company respected the union's Feb. 19 decision but would "redirect our investment to an undisclosed U.S. facility including retooling this facility for L/X platforms."

The Brampton plant currently assembles the Chrysler 300 sedan, Dodge Magnum wagon and Charger sports car on the L/X platform. It will add the Dodge Challenger muscle sports car in the summer of 2008.

Chernecki said demand for the existing three models is declining and the plant needs more products to keep its third shift and more than 900 jobs. Losing the shift will reduce efficienci

 

Good news, but I dont think that this would happen with their execs though.

Take a paycut, the overpaid er i mean esteemed beancounters [sm=type.gif] said if we close down a plant the money we save could gives us a raise.