This CAW/Chrysler/Fiat item is a great study of clashing negotiating strategies, and Ken Lewenza and C0. are very likely looking back instead of looking forward (which seems to be common with U.S. automakers). I confess that my perspective is shaped by this article in today’s Financial Post, a conservative (anti-union?) publication. For full disclosure, my education is heavily in business, and I teach in the MBA program at Schulich Business School.

If everyone has it in for the CAW, as Lewenza claims (”[the Canadian Government is] interfering in our negotiations [with Chrysler), then he needs to fight back with some pretty powerful evidence. The fundamental premise of the “other side’s” argument is that CAW workers are paid much more than Toyota and Honda workers, so the wages need to come down to competitive levels.

Lewenza challenges that argument directly (although it is at the very end of the article; damn right-wing editors!). He says that “Canadian executives at Toyota and Honda have described many times their strategy of essentially matching wages, pensions and core benefits to those paid in CAW-represented facilities.” So, I guess, it is just a shell game, and CAW workers and workers at Toyota and Honda are ALREADY paid the same wages, right? If that is the case, then there must be another reason that Chrysler is so unable to compete. Such as, no one buys the cars. This is not good news for CAW workers in Chrysler facilities.

This situation is a clear example of an entity (CAW) or at least a person (Ken Lewenza) so heavy with history that they cannot shed a combative/competitive mindset that has no place in competitive industries where stakeholdes (including government) need to work together to beat the real competition. I feel sorry for the people who are being mislead so badly by Mr. Lewenza. This will be a powerful lesson for organized labour.

Tagged as: Chrysler, Ken Lewenza, Negotiations

• February 2013
• January 2013
• November 2011
• October 2011
• February 2011
• November 2010
• October 2010
• September 2010
• July 2010
• June 2010
• May 2010
• April 2010
• March 2010
• February 2010
• January 2010
• November 2009
• October 2009
• September 2009
• August 2009
• July 2009
• June 2009
• May 2009
• April 2009
• March 2009
• February 2009
• January 2009
• November 2008
• October 2008
• September 2008
• August 2008
• July 2008
• June 2008
• May 2008
• April 2008
• March 2008