CAW agrees to Chrysler healthcare trust

TORONTO, April 25 (UPI) -- Canadian Auto Workers say they have reached a tentative agreement with Chrysler LLC and Fiat that would cut the carmaker's operating costs by $190 million.

The deal would slash the Canadian workers' benefits but could be a key step in ongoing negotiations to save the struggling Detroit automaker, which is rushing to avert bankruptcy by trying to convince the U.S. government it is still a viable company, the Detroit Free Press reported Saturday.

CAW President Ken Lewenza said late Friday in Toronto that the union, together with Chrysler and Fiat, will create a healthcare trust much like a similar setup the United Auto Workers are using in the United States to administer retiree healthcare.

Lewenza said none of Chrysler's plants in Windsor, Bramption or Etobicoke, Ontario, will close, but indicated the Windsor plant's third shift will end in August.

He told the Free Press that Chrysler and Fiat have indicated to him that if Chrysler files for bankruptcy next week, it would be split into "a good company and a bad company. And the bad company would be sold off. We're living to fight another day. But the fear and uncertainty is not over. Not by a long shot."