TORONTO - The Canadian Auto Workers union and Chrysler have suspended official negotiations as the cash-strapped automaker focuses its efforts on working out a critical alliance with Italian automaker Fiat.
CAW president Ken Lewenza said Thursday he believes Chrysler is focusing on the Fiat discussions because labour talks are "secondary" to the partnership, which many say is essential to Chrysler's survival.
"It's clear that if the Fiat merger doesn't come together then all the rest, quite frankly, is secondary," Lewenza said in an interview.
The union and the company are still talking, but face-to-face meetings have been suspended for now, he added.
"It's just a couple of the senior officers of the union and the senior officers of the company just trying to keep the lines of communication open, but there's no real bargaining going on," Lewenza said.
Governments in Canada and the U.S. told both Chrysler and General Motors earlier this week that they hadn't met the requirements for long-term bailout loans.
GM was given 60 days to come up with a new plan, while Chrysler was given 30 days to cement the Fiat alliance. The Canadian federal government and Ontario government also provided Chrysler with $250 million this week so the automaker could make its payroll commitments.
A partnership with Fiat would give Chrysler access to smaller car technology that the Detroit-based auto company currently lacks, and many industry analysts say Chrysler will be forced into bankruptcy protection if it can't complete the deal by the end of April.
In Canada, a parts shortage forced Chrysler to cancel Thursday afternoon shifts at its minivan plant in Windsor, Ont., and its car plant in Brampton, Ont.
CAW Local 444 president Rick Laporte said Chrysler is trying to shift production of the needed parts to its own facility in west-end Toronto, but the just-in-time delivery system is causing disruptions.
