Dispute between Chrysler and carrier Allied Systems still unresolved

Article by Christian Andrei, on March 25, 2011

Chrysler Group failed to reach a deal with one of its primary vehicle-hauling contractors and as a result, the minivans were seen to be piling up at the carmaker’s Windsor assembly plant.

On March 16, Allied Systems Holdings withdrew carrier services from Chrysler and General Motors Co. but so far, the talks between the companies have not resolved their dispute.

Rick Laporte, president of Canadian Auto Workers Union Local 444, said that if the parties don’t come to an agreement soon, it would make it possible that the Windsor Assembly plant would be shut down. CAW 444 represents 160 Allied workers in Windsor and 5,000 Chrysler workers at the Windsor plant.

CAW union represents a total of 600 Allied workers in Quebec and Ontario. Laporte said Chrysler is transferring inventory from the plant property to lots around the city of Windsor while it aims to coordinate with other carriers to make up for the slack.

Allied also halted service at other Chrysler plants but Windsor is the plant where Allied has the largest role. The conflict between the carrier and the automakers originates from Allied workers issuing threats that they will go on strike after the company said that it will reduce pay by 20% for the 2,500 U.S. and Canadian workers represented by the Teamsters union.

These salary cuts would be in violation of the Teamsters’ national car-hauling agreement.

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