Chrysler, CAW suspend talks
Last Updated: Thursday, April 2, 2009 | 1:58 PM ET
The Canadian Press
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The Canadian Auto Workers union and Chrysler have suspended official negotiations as the cash-short automaker focuses its efforts on working out a critical alliance with Italian automaker Fiat.
CAW president Ken Lewenza said he believes Chrysler is focusing on the Fiat discussions because labour talks are "secondary" to the partnership, which many say is essential to Chrysler's survival.
Lewenza said the union and the company are keeping the lines of communication open, but face-to-face meetings have been suspended for now.
Governments in Canada and the U.S. told Chrysler and General Motors earlier this week that they hadn't met the requirements for long-term bailout loans.
GM was given 60 days to come up with a new plan, while Chrysler was given 30 days to cement the Fiat alliance.
A partnership with Fiat would give Chrysler access to smaller car technology that the Detroit-based auto company currently lacks.
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