Chrysler Workers in Canada Ratify New Contract, Return to Jobs

Chrysler’s 10,000 auto workers in Canada returned to their jobs Monday after giving overwhelming approval to a new labor contract, ending a 5 1/2-day strike against the No. 3 auto maker. But 70,000 Chrysler workers in the United States remained on strike, as separate negotiations between Chrysler and the United Auto Workers, aimed at ending the larger American walkout, continued late Monday.

On Sunday, the newly independent United Auto Workers of Canada reached tentative agreement with management on a contract that will require Chrysler to pay its Canadian workers wages and benefits equal to those received by workers at the Canadian operations of General Motors and Ford.

Canadian UAW officials said that more than 97% of the approximately 8,000 workers who voted Monday gave their approval to the new pact, and the workers then quickly began reporting back to work.

But Chrysler also warned its returning Canadian workers that they may be laid off by the end of the week if the American strike is not resolved by then.

In the United States, talks resumed Monday after recessing on Friday so that union leaders could attend a previously scheduled meeting in Alabama on Saturday. UAW President Owen Bieber said on Friday that the two sides remained far apart on several key issues, including profit-sharing and job security for union members, as well as a new union demand that Chrysler also pay special cash bonuses to its U.S. workers.

Company and union bargainers were unavailable to comment on the pace of the talks Monday, but the Canadian settlement appeared to put added pressure on the American union to settle quickly.