Auto talks making no progress as strike deadline looms, says Lewenza

The head of the Canadian Auto Workers union says it has made no progress in talks with the Big 3 automakers as the countdown continues to a strike.

“Here we are three-and-a-half weeks of intense meetings and the companies are taking the same position they did from day one,” CAW president Ken Lewenza said Friday afternoon during a break in marathon talks.

He said General Motors, Ford and Chrysler have dug in and are not backing down on their proposals to reduce fixed costs.

Demands include eliminating cost-of-living allowances, requiring employees to make contributions to the defined benefit pension and a new hire rate that never progresses to the top level.

Lewenza said the automakers have responded unfavourably to the union’s latest offer that proposed some concessions particularly in conditions for newly hired workers in a bid to win some guaranteed investments in Canada.

“Where we have shown some flexibility, they’ve been very, very stringent on their positions.”

He said the union isn’t going after GM and Ford’s record profits or Chrysler’s almost miracle turnaround.

“All we’re saying is that we want some modest improvements.”

The union is gearing up for a strike at 11:59 p.m. on Monday but Lewenza said the deadline can be extended if it sees progress in the final few days of talks.

“If it’s five to 12 on Sept. 17th and we see light at the end of the tunnel then we’ll just keep going until the deal is done. But there would have to be a mega-shift in responses from the companies for that to happen.”

Debt rating agency Moody’s said Friday that even a short strike 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.

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.