Fiat CEO Demands Labor Concessions, or No Chrysler Deal

For years, U.S. automakers have been unable to reign in the ridiculous deals demanded – and received – by the auto workers union. Now, it appears that an Italian auto company may be able to success where the big three have failed miserably. That outrageous contracts with the UAW are mostly to blame for the downfall of the U.S. auto industry is well understood now (at least by those not in the unions), but Fiat CEO Sergio Marchionne is putting the exclamation point on the statement. Marchionne, possibly the only man in the world who can save ill-run and union-hampered Chrysler, has noted that his company, Fiat, will simply walk away from a nonbinding agreement to take a 20% stake in Chrysler unless the U.S. firm’s unions agree to cost cuts.

For those who have been railing against the unjustified costs incurred by the industry by virtue of lopsided labor agreements, giggling with glee may not be too extreme a reaction, given the current situation. Speaking for the overpaid masses, Brett Ward, a 15-year Chrysler veteran who drives a forklift at an assembly plant in a Detroit suburb, noted, "There’s definitely some worry and concern about what’s going on. We haven’t been asked to vote on the contract changes yet."

Presumably, Ward and his ilk would be upset to be paid market value for driving a forklift (no special training or education required, folks), but will instead demand to be paid according to what they perceive as a "living wage" (read: enough to buy a big screen TV). No word if Ward and his comrades will agree to a pay cut, but if they don’t, they may just destroy their own livelihoods.