LaSorda warns CAW about labor concessions

Chrysler Vice Chairman Tom LaSorda is getting set to play hardball with the Canadian Auto Workers union. LaSorda has already threatened to shut down Chrysler’s Canadian operations if the automaker’s demands for concessions aren’t met and new CAW President Ken Lewenza has said Chrysler is asking the union for unfair terms.

At stake is Chrysler’s survival, as a new agreement has to be in place by May 1 in order for the federal governments of both the United States and Canada to provide billions in low-cost loans to keep the car company afloat.

Fiat CEO Sergio Marchionne has also been critical of the CAW, saying the unions’ stand puts the chance of an alliance between the two automakers at a very high risk.

Lewenza has said the two sides have been close to an agreement twice before but talks were broken off when Chrysler’s attention was diverted elsewhere.