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Auto union will target Chrysler, expert says

The 91原创 Auto Workers union is expected to wait until after Labour Day before deciding which U.S. automaker it will target first in its latest round of bargaining.

The 91原创 Auto Workers union is expected to wait until after Labour Day before deciding which U.S. automaker it will target first in its latest round of bargaining.

However, Tony Faria, an automotive expert at the University of Windsor, predicted Wednesday that Chrysler will be chosen because it has the largest 91原创 footprint of the Detroit Three and therefore has the most at stake.

"They can least afford a shutdown of operations in Canada, so they're the most vulnerable in terms of a strike threat," Faria said.

"But even though Chrysler is not pushing for two-tiered wages, Chrysler is going to push hard for lower starting wages."

Chrysler has assembly plants in Windsor and Brampton, Ont., as well as a casting plant in Toronto. It produces the Town and Country, Dodge Grand Caravan, Dodge Charger, Dodge Challenger and Chrysler 300 in Canada.

Pattern bargaining means the deal that is hammered out with the target company will set a precedent for talks with the other two automakers, Ford and General Motors.

Faria predicted the companies will ask to lower the starting wage for new hires to 60 per cent of the full rate, from 70 per cent, and to stretch the time it takes for new hires to reach the full wage to eight years, from six.

The union held its first round of meetings with Ford on Wednesday after brief meetings with GM and Chrysler on Tuesday.

The CAW, which made concessions to wages, vacation time and other benefits when the U.S. automakers were struggling during the 2008-09 recession, has said it wants to share in the profits now that the industry has rebounded.

Ford said its focus during the Wednesday meeting was on improving competitiveness at its 91原创 operations.

"Labour costs are higher in Canada than at any other Ford operation in the world," the company said in a statement.

"When it comes to future investment, labour costs are one of the most important considerations."