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CAW WINS COURT CASE: 8,000 CHRYSLER WORKERS TO RECEIVE $35,000,000

 CAW WINS COURT CASE: 8,000 CHRYSLER WORKERS TO RECEIVE $35,000,000
 TORONTO, July 16 /PRNewswire/ -- More than 8,000 Chrysler workers, members of the Canadian Auto Workers union, began receiving checks from Revenue Canada last week as a result of a federal court decision ordering a tax refund to the workers. Both Chrysler and Revenue Canada informed the CAW the decision will not be appealed. It is estimated the total payout will be around $35 million.
 These refunds are a result of a court challenge by the CAW to a Revenue Canada ruling regarding Chrysler Employee Stock Ownership Plan (ESOP) benefits. The benefits received by the workers in 1986 were taxed as income. The court ruling overturned that decision resulting in tax refunds plus accumulated interest.
 "This payout closes the chapter on concessions at Chrysler," Jim O'Neil, CAW secretary-treasurer, said today. "When Chrysler, as we predicted, began to make record profits we had to fight like hell to get what was owed to the workers at the bargaining table. It's taken more than a decade, but these checks are the final payback."
 With Chrysler near bankruptcy in 1979, the U.S. government passed legislation providing loan guarantees of $1.5 billion but also requiring Chrysler to obtain wage concessions from its workers and establish an ESOP.
 At the outset the CAW, then the UAW, was opposed to the U.S. legislation being imposed on Canadian workers. By 1985, the CAW had bargained the termination of the ESOP. The provision that benefits could only be realized on death, termination, or retirement was eliminated. Thousands of workers cashed in their shares but the benefits were taxed at a rate of 30 percent.
 The CAW initiated legal proceedings claiming the benefits should be treated as capital gains. The federal court upheld the CAW's argument.
 CAW Local 444 will be holding a press conference in Windsor on Friday, July 17.
 -0- 7/16/92
 /NOTE TO EDITORS: The CAW Local 444 press conference tomorrow will be held at 9:30 a.m. at the Compri Hotel, Cartier Room, 333 Riverside Drive West, Windsor/
 /CONTACT: Jane Armstrong of CAW communications department, 416-495-6548/
 (C) CO: Canadian Auto Workers ST: Michigan, Ontario IN: AUT SU:


GK -- NY107 -- 9909 07/16/92 15:39 EDT
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Publication:PR Newswire
Date:Jul 16, 1992
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