CAW chief won't speculate on talks

Canadian union president, Gov. Granholm agree Chrysler needs deal for federal loans

Detroit News and wire reports

Toronto -- The president of the Canadian Auto Workers union refused to say Monday whether the union will give more concessions in negotiations with Chrysler LLC.

Ken Lewenza has previously insisted the union will stick to the pattern established in a deal with General Motors Corp. last month. At a rally Monday in Toronto to protect pensions, he declined to speculate on what might happen in negotiations that were expected to resume Monday evening.

Lewenza said the situation is "shifting enormously," and he's still waiting to see the outcome of ongoing negotiations between Chrysler and the United Auto Workers in the U.S.

Chrysler has until the end of the month to reach an agreement with the CAW, the UAW and potential partner Fiat SpA to receive government loans from Canada and the U.S.

Michigan Gov. Jennifer Granholm, in Detroit to address the SAE World Congress for automotive engineers, said Monday that she still believed Chrysler would meet the April 30 deadline to reach a deal with Fiat "but it's very dicey."

"There's a lot going on behind the scenes -- a lot of negotiations," Granholm said, noting the banks that hold $6.8 billion of Chrysler's secured debt haven't yet agreed to concessions.

"There is a will to get there. The question is can those who need to take a haircut get that agreement in place," she said.

Lewenza agreed, saying "There is an incredible amount of pressure on the CAW and obviously a significant amount of pressure on Chrysler Corp. to come to a resolution, hopefully this week, to qualify for the terms and conditions of the loans from government."

Both Chrysler and the Canadian government say the union must offer a lot more concessions so that labor costs are competitive with non-unionized Toyota Motor Corp. employees in Canada.