The Canadian Auto Workers and Chrysler Canada had begun a marathon bargaining session critical to the company's future in Ontario -- and steady pay cheques for about 9,000 hourly workers.

CAW president Ken Lewenza told CTV Toronto on Monday before going into the negotiations that Chrysler's position that the union must agree to a total of $19 per hour in wages and benefits is not bargaining.

"I was quite surprised that Chrysler drew this line in the sand," he said.

Chrysler claims total compensation is about $76 per hour when wages and benefits are lumped together, but there is some dispute between the two sides over that figure.

Lewenza said he couldn't see his union agreeing to such a steep cut, but also said he didn't want to speculate about what might happen if no deal can be reached.

The negotiations on labour concessions are a final step to try and save the automaker from bankruptcy or even liquidation.

Chrysler has until the end of the month to give the provincial and federal governments a business restructuring plan that will show the company can rebuild itself with the help of government loans.

Earlier Monday, Lewenza said he resents criticism that his members are unwilling to budge in their do-or-die negotiations with Chrysler Canada.

He told a news conference that the CAW has shown more flexibility in its negotiations than ever before in the organization's history and that it's time people stopped blaming the union for the auto industry's troubles.

"There's not one single financial analyst out there that will say to you today that seven per cent of the manufacturing industry's entire labour cost will be the determining factor of whether (the struggling companies) stay open or not," he said.

"Seven per cent of the total labour cost is getting 100 per cent of the criticism," he added.

He said instead the focus should be on the "billions of dollars in transactions between bondholders and the government."

The GM deal

Last week, Lewenza promised the union wouldn't concede to any more wage cuts than it did in their agreement with General Motors.

The GM agreement is estimated to save that automaker about $7 an hour per worker, something that General Motors Corp. CEO Fritz Henderson said put the compensation figure at a competitive rate.

Lewenza said his members would help Chrysler find other ways to save money.

On Monday, however, he admitted the situation is "shifting enormously" and said he is keeping a close eye on how negotiations unfold in the U.S. between Chrysler and the United Auto Workers union.

But Fiat CEO Sergio Marchionne told The Globe and Mail last week that his company will renege on a proposed partnership with Chrysler if the CAW doesn't agree to the cut.

Lewenza reiterated on Monday that the CAW had given up hundreds of millions of dollars in concessions already and that it was time the company look elsewhere to cut costs.

He said he had received calls from representatives of both the provincial and federal government urging him to reach a deal with Chrysler quickly.

"It's frustrating but we'll get through it," he said.

Auto industry analyst Charlotte Yates said Monday that Chrysler is taking advantage of the heavy political pressure facing the union to frighten members into thinking the company will fold if they don't agree to concessions.

"We have to understand that this is a political issue, as well," Yates, of McMaster University, told CTV Newsnet. "I think the company sees this as an opportunity to restructure and to get what it can out of the union and then, wow, how lucky can they be but Fiat, as well as our own government, comes in and says to the CAW you have to do this."

Yates said even if Chrysler wins union concessions and issues a plan by the deadline, the company will likely end up in bankruptcy, even if for a short period, to recalibrate its finances.

The federal and Ontario governments have already loaned Chrysler Canda $750 million of $1 billion promised.

GM has $3 billion to draw upon when needed.

Michael Bryant, Ontario's economic development minister, said all stakeholders must make concessions to get a deal done.

"It is absolutely the case that everybody has to come to the table. There has to be equality of sacrifice," Bryant said. "I'm hopeful that that's going to happen."

Workers 'insecure'

Lewenza began the news conference pleading with Canadian governments to give pension protection the same priority it gave the banking industry at the start of the recession.

He said the Ontario budget made some clear promises about working with the federal government to enhance the pension plan.

Since then, the province has made workers feel "insecure" with speculation that the Ontario Pension Benefits Guarantee Fund is not substantial enough to protect auto industry pensioners who are at risk of losing their job, Lewenza said.

The pension fund has about $100 million available. That fund provides pensioners in every industry with up to $1,000 per month in case a private pension plan fails.

But the pension liabilities of the flailing auto industry runs into the billions.

Lewenza said Monday that governments have a responsibility to make sure that pensions "are adequate moving forward."

With a report from CTV Toronto's Tom Hayes and files from The Canadian Press