TORONTO - The president of the Canadian Auto Workers says his union won't accept a ban on strikes similar to one detailed in the U.S. as a condition of US$17.4 billion in loans to Chrysler and General Motors.
Ken Lewenza said the CAW has not yet been informed of any conditions attached to C$4 billion the federal and Ontario governments have agreed to lend to Chrysler and GM.
But he says he was "shocked" to hear about a U.S. provision that automatically places the two companies in default if union workers go on strike.
A General Motors Corp. filing this week with the U.S. Securities and Exchange Commission detailed the provision banning strikes as part of its US$13.4 billion in federal loans.
A person briefed on Chrysler LLC's US$4 billion loan, who didn't want to be identified because the company is in talks with the United Auto Workers about concessions, confirmed Thursday that the Chrysler deal also has a similar provision.
The UAW isn't a party to the deal and hasn't threatened a strike, its most potent weapon against the Detroit automakers.
"It's just one more indication that the Republican party not only wants to challenge the strength of the (United Auto Workers), they want to take away every tool we may have in our arsenal to defend the interests of our members," Lewenza said in an interview.
He said a similar provision in Canada would simply "add fuel to the fire" in an industry that has been beset by tens of thousands of job losses in recent years.
"I would be incredibly disappointed if the government dictated that as a condition because I think that violates our collective bargaining rights as protected by law," Lewenza said. "We won't accept it, simple as that."
The Canadian and U.S. governments agreed to provide billions in emergency loans to the beleaguered automakers after they warned they could go bankrupt without financial help.
