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Chrysler outsourcing defeated for the moment

Chrysler planned to outsource 300 trucking jobs in its Windsor assembly plant (that’s Windsor, Ontario rather than any other town of the same name, say, where the Queen might live in the UK) but it’s been stopped, at least for the moment, by union action.

According to Blackburn News workers from the Fiat-Chrysler Automobiles (FCA) transportation unit had a meeting at local venue the Caboto Club on Sunday where the speakers from Unifor Local 444, the union involved in the negotiation, confirmed that the managers’ letter on intention to outsource the jobs had been rescinded.

Financial reality

Inevitably the union will see this as a positive thing because it is protecting its members’ jobs and interests. This is valid to a large extent. However, it’s worth noting two things. First, if this is a positive for the members (whose interests the union is obliged to represent) it also means 300 jobs in the outsourcing industry are not going to happen unless the decision is reversed. This is not an attempt to value one set of employees over another, just to comment that the actual job impact is likely to be neutral.

Second, if Chrysler ends up with a less competitive or sustainable business as a result, this might not be universally brilliant in the longer term.

We’re guessing that the management will come back with a counter-offer rather than accept this at face value.

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