I noted a while back that the U.S. government’s bailout of the auto industry was made contingent on the companies obtaining cuts in labour costs. That would mean getting the union to agree to concessions of some sort. The stakes are huge, as the government could pull out if the concessions are not made, which could cause both companies to declare bankruptcy. That would almost certainly lead to even more mass layoffs, and employee and retirees would probably lose a lot of their benefits.
But the UAW is playing hardball and not giving in without a fight, as this story discusses. Meanwhile, the Canadian operations of the companies and the Canadian Auto Workers are waiting anxiously to see what happens. G.M. and Chryslers’ future in Canada is probably riding on the American talks.