Make concessions, Canadian auto union told

OTTAWA, April 16 (UPI) -- Canada's federal industry minister says the Canadian Auto Workers union must make concessions of as much as $19 per hour to save two carmakers.

In an interview with the Globe and Mail in Ottawa, Tony Clement said time was running out to save the Canadian divisions of Chrysler and General Motors from bankruptcy.

"We're coming down to the point where we need everybody to realize the dire situation facing the companies," Clement said.

Clement said in a discussion with Fiat Chief Executive Sergio Marchionne, the Italian said Fiat would drop its partnership with Chrysler if its labor costs in Canada and the United States weren't pared back.

Clement said if the Fiat deal isn't struck Chrysler will receive no federal loans.

Total wages and benefits at Chrysler Canada are now about $76 per hour, and CAW union President Ken Lewenza told the newspaper $19 per hour cuts are "not going to happen." He called Clement's demand "unreasonable."