Canada Union: Tentative Deal With Chrysler

By: Rob Gillies, Associated Press Email
By: Rob Gillies, Associated Press Email

TORONTO (AP) - The Canadian Auto Workers say they reached a tentative agreement on a new labor deal with Chrysler.

CAW President Ken Lewenza says the deal was reached Friday evening.

Chrysler has until April 30 to reach deals with its unions in Canada and the U.S. to cement a technology-sharing alliance with Fiat. It also needs to provide a restructuring plan to governments in both countries that will enable it to qualify for government loans to keep it afloat.

Chrysler told the CAW that it wanted concessions from the union that would make the labor costs competitive with non-unionized Toyota in Canada. It wasn't immediately clear if the deal does that.

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