TORONTO - Canadian Auto Workers members in Toronto were thinking philosophically Saturday as they considered a tentative deal with Chrysler that would save the company $240 million a year and perhaps protect their jobs -- at least for a little longer.
Working, laid off and retired CAW members alike said they knew the additional sacrifices being considered would offer no ironclad guarantees to protect their jobs and pensions, but some seemed willing to accept the deal as the best and only option they have in these dire economic times.
Union president Ken Lewenza was emotional as he announced the agreement late Friday night and called it a victory, despite some major concessions that were made to seal the deal. The agreement finds cost savings totalling $19 an hour through cuts to workers' benefits but maintains base wages.
Accepting the deal won't relieve his worries for the future and the concessions are "painful" to accept, said auto worker Julian Layne.
But there's a recognition among members that everyone must suffer a little bit in these uncertain economic times, he added, even though their sacrifices could be in vain.
"There is no such thing as guaranteed jobs ... even life itself is not a guarantee," Layne said after workers voted on the deal in Toronto.
"Our jobs depend on the marketplace, our jobs depend on people buying vehicles and if people are not buying vehicles at the end of the day, there are no jobs."
Based on a speech delivered Saturday morning by Lewenza in Toronto and the mood in the room, Layne predicted an overwhelming number of his fellow members would vote for the deal.
Laid-off electrician Peter Skrzynecki said he believes the union got the most that it could out of Chrysler and hopes the economy will turn around before things get worse.
"I'm all for it, I really liked what (Lewenza) said and I thank him for it," said Skrzynecki, who has struggled to find steady employment for a year.
"It's hard to say right now what the outcome is going to be, but as of now, this is the maximum they could do."
Retiree Mike McCue also thought members were pretty upbeat after the meeting and thought the deal could have been a lot worse.
"I think the members was heartened in the fact that we never lost as much as we thought we would. And from a retiree, I was pleasantly surprised," he said.
"Anybody who's been reading the newspapers over the last six or seven months should realize conditions are tough."
The agreement reduces paid relief time, cuts some supplementary unemployment benefits, increases prescription drug fees, eliminates semi-private hospital coverage and gets rid of the employee car purchase and tuition rebate programs, among other things.
The salaries of new workers will also increase more slowly than they do currently, and more room will be made for part-time and contract workers in Chrysler plants.
Chrysler said it "deeply appreciated" the union's efforts to cut its labour costs to a competitive level.
Votes were scheduled for Saturday and Sunday in Toronto, Mississauga, Ont., and Windsor, Ont., with the result expected sometime Sunday night.
The concessions that workers could accept are in addition to cuts already agreed to with General Motors in an deal reached last month.
That agreement freezes wages until 2012, reduces paid time off by 40 hours per year, scraps an annual $1,700 bonus, cuts company contributions to union-sponsored programs and requires CAW members to contribute $30 a month to their health benefits.
Breaking from the pattern set with GM is a substantial departure for the CAW, which usually negotiates similar deals between all three of the Detroit-based automakers.
Chrysler now has until the end of the month to negotiate a partnership with Italian automaker Fiat and to reach deals with its U.S. workers, bondholders and other stakeholders in order to receive long-term bailout loans from governments in Canada and the U.S.
Without a restructuring plan that governments deem acceptable, Chrysler will likely be forced to file for bankruptcy protection or even liquidate its assets.
Lewenza said Chrysler told him it plans to split into two parts if it files for bankruptcy protection: one that will continue to operate with the help of an alliance with Fiat, and another that will liquidate its assets.
He said he has been assured that all of Chrysler's Canadian plants will continue to operate under such a scenario.
Chrysler also guaranteed the CAW that it will not ask for further concessions if it finds itself in bankruptcy court.
The CAW will now negotiate similar deals with Ford and GM to maintain fairness and competitiveness among the Detroit Three automakers.
Chrysler Canada employs about 10,000 hourly workers and 1,000 white collar employees at its assembly plants in Windsor, Ont., and Brampton, Ont., and a casting plant in Toronto.
