GM, Ford, Chrysler's Canadian Workers Vote to Authorize Strike

Aug. 29 (Bloomberg) -- General Motors Corp., Ford Motor Co. and DaimlerChrysler AG employees represented by the Canadian Auto Workers voted to allow a strike in the event a contract isn't reached by Sept. 20 in talks that may set the tone for U.S. negotiations in 2007.

The vote was 97.1 percent at General Motors in favor of authorizing union officials to call a strike, 95.5 percent at Ford and 97.9 percent at DaimlerChrysler AG's Chrysler unit, the Toronto-based CAW said in a statement yesterday. The CAW represents about 41,800 employees at the three companies.

This year's Canadian talks, which began last month, may be a barometer for contracts to be negotiated by the three U.S. automakers with workers in two years. Detroit-based General Motors, Ford and Chrysler want to hold down cost increases in their Canadian operations and General Motors is trying to cut spending in the U.S., particularly in health care.

``It is absolute common sense if the Canadian labor leaders to get a common position with their U.S. counterparts first and vice versa before they negotiate with the companies because if not, the companies will try to play off one side against another between the countries,'' said Peter Schmidt, managing director at Automotive Industry Data, a consulting company in Warwick, England.

General Motors is seeking health-care concessions from U.S. workers represented by the United Auto Workers. That effort faces delays after UAW President Ron Gettelfinger said Aug. 26 the union hasn't finished a study of the company's finances.

UAW Questions Cuts

Gettelfinger said last month that GM had failed to convince the union that its challenges are steep enough to warrant health- care givebacks. GM contends that health expenses for employees, retirees and dependents make the company uncompetitive against Toyota Motor Corp. and other carmakers by adding more than $1,500 to the cost of each U.S. vehicle sold.

The Canadian Auto Workers next week will select a strike target among GM, Ford and Chrysler. The CAW will concentrate on reaching an agreement with that company as a blueprint for the other two.

The strike vote ``really is support for the bargaining committees to continue,'' CAW spokesman Jim Pare said in an interview yesterday. ``These meetings also give us a chance to update the membership'' on negotiations.

Strike Target

In previous talks in Canada, automakers have sought to be designated as the target company, saying it gave them the best chance to shape a new contract. CAW President Buzz Hargrove said last month at a union convention in Toronto that none of the companies is seeking to be the target.

The strike ballot shows ``that our members understand the importance of backing their bargaining committees as we head into what will be a tough round of bargaining with General Motors, Ford and DaimlerChrysler,'' Hargrove said in yesterday's statement.

The German shares of General Motors were down 1.2 percent at $33.73 as of 10:39 a.m. in Frankfurt. Ford's German stock fell 0.4 percent at $9.73. Shares of Stuttgart, Germany-based DaimlerChrysler were down 7 euro cents, or 0.2 percent, at 41.87 after falling as much as 1.7 percent to 41.25 euros.