Governments lean on Chrysler Canada talks

TORONTO, April 21 (UPI) -- The federal government of Canada and provincial government of Ontario are pressuring the Canadian Auto Workers union and Chrysler Canada to speed up talks.

At issue is the federal demand that wage and benefits be rolled back $19 an hour to $57 in order for the beleaguered automaker to receive further federal bridge financing, the Globe and Mail reported.

Both Canada and Ontario have given the two sides until April 30 to have a deal ratified by union members, and Monday, CAW President Ken Lewenza said he'd been contacted by both governments about the deadline.

"(They) said 'You guys have got to get back to the table,'" he said.

Of the $1 billion offered to Chrysler Canada by the two governments, $750 million has been loaned so far, the Globe said.

Lewenza has so far rejected the call for the $19 rollback for the 8,000 Chrysler workers, contending that only 7 percent of the cost of assembling a vehicle is labor-related, the newspaper said.

Talks resumed Monday afternoon and were scheduled to continue Tuesday.