FIAT CEO Warns Chrysler Deal In Danger If UAW Fails To Cooperate

FIAT CEO Warns Chrysler Deal In Danger If UAW Fails To Cooperate

Fiat Group SpA CEO Sergio Marchionne is ready to walk away from a proposed alliance with beleaguered Chrysler LLC if the automaker's union workers do not agree to concessions that would put their pay on the same scale as workers at U.S. plants owned by foreign car companies.

In a story posted today on The Toronto Globe and Mail's Web site, Marchionne said not getting concessions from the UAW and CAW are a breaking point for talks.

"Absolutely we are prepared to walk," he said in the story. "There is no doubt in my mind. We cannot commit to this organization unless we see light at the end of the tunnel."

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roundwegoroundwego - 4/15/2009 10:09:48 AM
+1 Boost
Same old story.this is utter insanity.


Agent009Agent009 - 4/15/2009 10:44:48 AM
+5 Boost
You would think that all parties agree that both are doomed without cooperation.

But for some reason every talk with the UAW has to be preceded by a threat.

Similar in fashion to the way the UAW always entered contract negotiations in the past. I guess what went around comes around.


DeutschlandDeutschland - 4/15/2009 11:19:08 AM
+1 Boost
My guess is the UAW will concede because otherwise Chrysler will be liquidated.


A4ORCEA4ORCE - 4/15/2009 11:44:07 AM
+2 Boost
I'm going guess UAW agrees to Fiat's terms for survival, then make their own threats in the near future. Just disgusting...


mini22mini22 - 4/15/2009 12:01:00 PM
+1 Boost
It appears there is the sticking point with the CAW in Canada. I guess they are just blind and stupid. This is not rocket science. Both the the UAW and CAW must agree to the same wages that Americans get with foreign auto companies in the US or they will soon be out of a job. Chrysler will no doubt declare bankruptsy immediately after April 30th.A real shame as I really think this merger will work. There needs to be the same pay for all auto workers for companies to be competative. The unions need to shift focus away from money demands or else.


NItePhireNItePhire - 4/15/2009 12:03:07 PM
-2 Boost
What does Fiat car anyway. They are getting 35 percent of a company for free.. and have the option of taking over 50 percent when this deal is done for a small amount. Fiat cant help them anyway. The cars they are talking about sending here are atleast two years away. Partnering with Nissan in the same situation makes more sense.


WhelanWhelan - 4/15/2009 12:11:18 PM
+5 Boost
This would help Chrysler, put these overpaid UAW people on the level again. Out of high-school with no college and you start at 80-100k a year. That is insane! Oh and you get incredible health benefits, and pension, oh and 95% of your salary if your fired. WTF, nobody has that kind of job security anymore. And don't lecture about they pay for some or all of their health benefits in some cases. If I was making 80-100k a year, I could easily afford the monthly health bill. Especially in states where the cost of living comparatively is low.


Joe_LimonJoe_Limon - 4/15/2009 12:14:22 PM
-1 Boost
hmm, I hope Chrysler fails soon... just so that some fear can be struck in the GM branch of the UAW.


VeeracerVeeracer - 4/16/2009 10:45:47 PM
+2 Boost
Sorry to correct you but GM will fail and wake up the ignorant, uneducated UAW workers at Chrysler.


investor27investor27 - 4/15/2009 12:26:05 PM
+2 Boost
I agree with the sentiment that the UAW must agree to the concession or face with thousands being out of jobs. But the reality is, and I have been saying this for a long time now, the UAW's motto is to never concede a single penny. They rather lose all their jobs and ruin the American's auto industry before making any kind of concession. That is their negotiation tactic. They have held all of us tax payers hostage for so long now, and now I, too, want the death of our auto industry only to get rid of the UAW. We can emerge from bankruptcy through reorganization and be much more successful afterward, but only without having to deal with the UAW.


WhelanWhelan - 4/15/2009 1:17:41 PM
0 Boost
It doesn't matter if they lose their jobs, they still get almost their full salary in out of work pay that will then become the governments problem since the auto company is going bankrupt which will increase our debt into more trillions than it already is.

Hey, what's a few more zeros on a check!


richardposlusznyrichardposluszny - 4/15/2009 1:54:59 PM
0 Boost
UAW loves throwing themselves under the bus.

Way to go!


100tnega100tnega - 4/15/2009 3:57:02 PM
-1 Boost
That's it Big Boy. Keep fighting. That fire will come in handy at the food stamp line.


A4ORCEA4ORCE - 4/16/2009 2:41:55 AM
+1 Boost
Go ahead and have GM pay whatever wage it is that you want or think you should get. In exchange, how about forgoing the taxpayer money that the rest of us ingnoramouses will be paying? Bottom line is that the moment the UAW complicitly stood by while GM begged for and got the bailout money, which isn't helping anyway (big surprise), they lost their right to bitch and whine about how the workers' pay is compared to Toyota or whatever the hell else is out there, so cry me a f--king river and thanks for involving the rest of us in this mess.


100tnega100tnega - 4/15/2009 4:01:03 PM
+4 Boost
Same moron who wants Chrysler.


VeeracerVeeracer - 4/16/2009 10:51:11 PM
+1 Boost
Now now, don't try and distract everyone by complaining about Fiat. At least they have their own capital and don't receive bailout money from the Italian government. Careful you inbred redneck, you lose your job at GM, you might be working for Fiat at a Chrysler plant.


VeeracerVeeracer - 4/16/2009 10:54:12 PM
+1 Boost
you calls these cars garbage? It's obvious you don't know jack $hit about cars. This coming from the guy who works for the company that brought you the Chevy Celebrity Eurosport, the Citation X, and the Chevette. I'd much rather have one of these instead of a 2 liter Alfa GTV.


mini22mini22 - 4/15/2009 5:21:11 PM
+8 Boost
A point-Fiat is one of the best selling brands in Europe now behind VW and I think Ford. Fiat is not the crap unreliable brand it was 25 yrs ago. Also Sergio Marchionne took the company from near bankruptsy(when he was hired)to what it is today.The problem is 1UAW you need to either accept wages at what the Koreans and the Japs pay at US plants or be out of a job. What would you prefer. Chrysler will most likely go into Chapter 7 liquidation,not Chapter 11.That means that it's assets will be sold off and some foreign auto maker will swoop in and buy them.Assuming that happens who ever they hire will be paid what the Japs and Koreans are paying at US factories.Certainly Jeep will be bought by somebody and perhaps Dodge.Of course the UAW and CAW will claim victory.You say that new hires are at $14 per hour. The problem is the "old hires needs to be at $14 an hour or is unemployment more appealing.What if the Chinese buy all the tooling for Jeep and Dodge and move it to China.(That what happened to British Leyland.They did come back to reopen the British factory but only hired back about 3% of the former work force.)


hyundaifansdotcomhyundaifansdotcom - 4/15/2009 5:37:02 PM
+3 Boost
The UAW strikes again! Looks like these pot bellied no high school degree having idiots just don't get it. Bend or get ready to line up for unemployment!!


Type707Type707 - 4/15/2009 8:31:11 PM
+3 Boost
It seems that the UAW never negotiates with terrorists.


VeeracerVeeracer - 4/16/2009 10:57:07 PM
+1 Boost
You truly are an idiot.


wooodwoood - 4/16/2009 12:59:35 AM
+1 Boost
UAW needs to bend because in order for the new partnership to work, they must be competitive first on the labor department. Otherwise, nothing is gonna happen. Nobody wants the UAW in its current form. Amen.


henstahensta - 4/16/2009 1:32:02 AM
+1 Boost
UAW is the cancer that ravages the host. At this stage of the disease the best course of action is: do not resuscitate. The UAW needs to be made DNR.


roundwegoroundwego - 4/16/2009 7:24:17 AM
+2 Boost
Why do you all assume that people who work in the auto industry are uneductated idiots. Do you feel you are that much better than them?


upwardsupwards - 4/16/2009 2:08:38 PM
+1 Boost
Most of it seams like jelousy what has the UAW done to these people? The government pays just as well and has the same benefits yet no one complains.


VeeracerVeeracer - 4/16/2009 11:03:17 PM
+1 Boost
This isn't a question of who's superior but rather, how can anyone justify a blue collar assembly line job paying the kind of wages they pay? Still, you'd be hard pressed to find more than 5% of the line workers with a college degree.


roundwegoroundwego - 4/16/2009 7:28:30 AM
+4 Boost
Something I have noticed. I don't know what kind of benefits Toyota or Honda workers have but as a comparison. Government workers compared to workers in a private company usually make quite a bit less but have much better benefits. Maybe the workers should decide which they would rather have.


mini22mini22 - 4/16/2009 1:35:52 PM
0 Boost
The other point about these legacy costs. There is a government backed program to pay out these legacy costs. This happened after Studabaker went bust in the early 60's. But here's the point. An old timer will only get about 20 to 25% of their benefits if chapter 11 bankruptsy is declared by either GM or Chrysler.So if this how the UAW wins by not agreeing to lower wages then I guess I don't quite get it.Wouldn't it be better to work for the lower wage and keep your job?


upwardsupwards - 4/16/2009 2:14:14 PM
+1 Boost
'Have you heard of commas, periods, you do know your run on sentences. Doesn't the uaw have a grade school program you can attend while you spend your time in the work bank?
How about one thought that makes sense.'


This is an auto site not school.


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