Link: http://www.cbc.ca/money/story/2009/03/22/chrysler-union.html
Summary:
The economy is now in recession and companies and workers are suffering. Here is another case. As you might have heard, Chrysler's minivan assembly plant in Windsor, Ontario, has laid off many employees and has plans to close down the plant as well. Closing down the plant would include the layoff of more than 5000 workers! This is why Chrysler and the Canadian Auto Workers (CAW) will begin talk aiming at reaching an agreement on worker concessions in advance of a looming deadline for the troubled automaker to receive billions in emergency loans from the Canadian and U.S government. The two sides both have different ideas on what the plan should be in order to get them out of the trouble they are in. The CAW believe that the union should stick to pattern bargaining, meaning it will ask Chrysler to accept a deal similar to the one that General Motors accepted upon earlier in this month. Chrysler described the plan as "unacceptable" to Chrysler, and threatened a complete pullout from Canada if the company did not get what it needs from workers and the government. The CAW hope an agreement can be made by the end of the week.
Connection:
Wages and Unemployment Insurance Deductions were the connections i made between the article and chapter 16. The CAW believes that Chrysler should stick with pattern bargaining, which includes the freezing of wages until 2012 and adjustments made to both wages and pensions for workers. Under the agreement, CAW members would also contribute $30 a month to their health benefits. Decreasing wages to employees would not only decrease the gross amount of money employees are making, but would also help Chrysler increase their profit because of less wage expenses. So what happens to the thousands of employees if Chrysler's minivan assembly plant closes down? More than half will not be able to have a source of income for at least a month. So what should they do? They should just continue looking for a job because they still have "unemployment insurance". The unemployment insurance fund was created from deductions made from previous portions of their cheques for if they were to ever become unemployed. When the become unemployed while willing and able to accept employment, the worker is entitled to receive payments out of the fund.
Reflection:
I think Chrysler should just stick with the Canadian Auto Worker's ideas of following the plan of pattern bargaining, like the one that General Motors accepted earlier in this month. It seems like a great idea that will benefit the thousands of workers, Chrysler customers, and the corporation of Chrysler itself. If Chrysler so happens to not come to an agreement and decides to pull out from Canada, i see a deepened recession that will be eventually lead towards a depression that will be even harder for the world's economy to get out of. So, cross your fingers, and if you have not started saving money, i suggest that you start now. When will our economy recover?
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1 comment:
With the recession darkening our economy, the Canadian Auto Workers are on of the biggest industries to have been hit hard. It is unfortunate that there are talks about the closing of plants which as the article stated, laying off more than 5000 workers. I think that if Chrysler and other Canadian car companies would have manufactured better cars to compete with the Japanese and Europe, the Canadian car industry wouldn't be in such a bad position. Even though there is fair amount of slowdowns in other car companies, it seems like the Canadian car industry has been hit harder. In general, if GM had manufactured better cars, the employees would still be working but with cut backs with wages and benefits. Even though they're making less than the amount before, it is better than the high chance of plant closures.
Tommy On
Block A
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