May 16, 2007

CAW says meeting with Cerberus was positive

Toronto, Ontario – Buzz Hargrove, president of the Canadian Auto Workers Union (CAW), said a meeting yesterday with the head of Cerberus Capital Management and Chrysler officials was “positive and constructive”. The New York-based private equity firm has agreed to purchase the Chrysler Group.

Hargrove said the meeting “created a more positive and confident outlook that the new company plans to be involved for the long haul.” He also said the union was provided with a written letter that pledges no layoffs of CAW members as a result of the ownership change.

The CAW president called Cerberus head Stephen Feinberg “knowledgeable about the auto industry”, and said Feinberg “expressed interest in working with the CAW to build a stronger company, rather than attempting to ‘slice and dice’ it.” Hargrove also said that Feinberg understands the issue of unfair trade in autos with Japan and Korea and the impact on North American auto manufacturers, and says Cerberus will help lobby both the U.S. and Canadian governments to deal with unfair trade.

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