Filed under: Chrysler, LLC., Daimler, Dodge, Jeep, UAW/Unions
UAW chooses Chrysler LLC as next target, talks already underway
A UAW leadership-approved contract between GM and the UAW is only a couple days from a rank and file vote deadline, so the UAW has begun negotiations with its next target, Chrysler LLC. The Cerberus-owned automaker is looking for a similar deal to what GM received, plus the same wage/benefit breaks GM and Ford received the past couple years. Chrysler feels it was slighted then when the UAW denied DCX its wish to even the playing field with Ford and GM when those companies got a benefit break, so that may be a big hurdle. Since Chrysler LLC doesn't have to deal with stockholders or a board, the Auburn Hills-based company can play its cards closer to the vest than others. Analysts are eager to learn if the new, privately-owned Chrysler will follow suit in talks, or try to go in a different direction.
Since GM has laid the framework for Chrysler and Ford labor contracts, we're hoping Chrysler and the UAW can come to a quick resolution without a strike. If Chrysler tries to take the wrong fork in the road, however, this could get interesting. Just this morning an anchor on a TV morning news program commented that if a strike against Chrysler does happen, it could start as early as tomorrow.
[Source: Automotive News - sub. req'd]
Reader Comments (Page 1 of 1)
Johnny Rotten 9:42AM (10/08/2007)
If anyone has the guts to break the union and hire scabs, its cerberus. They need to show some leadership and why they are an effective private equity firm by ditching this outdated and extremely inefficient model. If we have proven time and again that monopolies are inefficient, then why do we continue to allow them to occur. Since the government refuses to regulate labor monopolies, it is time businesses take action. Break their backs. Starve em till they come begging for a job.
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Mike 10:02AM (10/08/2007)
....and potentially go bankrupt in the process along with putting who knows how many dealers and suppliers out of business.
I wish getting rid of the UAW was easier but honestly, how long can a company survive with no product rolling out the door? There's still hundreds of thousands of salaried employees, mortgages, utilities, taxes, loans, etc. that have to be paid while they go through a hiring process to replace tens of thousands of hourly employees. Then you have to train them and get things back in order. That doesn't happen in a week or two.
I agree that of the three, Cerberus is in the best position, but it could all be for not if the new employees re-unionize, and they potentially could since anyone they hire is probably an out of work ex-union employee that has been spoon fed the UAW propoganda since birth.
The unions are here, as much as they are un-needed, they aren't going anywhere in the big three plants. The best bet is to hold out as long as you can and get an agreement that at least closes most of the gap between yourself and your competitors.
howard 2:21AM (10/09/2007)
Do you all know what UAW stands for? UNWANTED, ALL WASTE! just who the hell do they think the are? I know,GOD has been kicked around but the membership voted that down for lack of evidence! They get a bug up their ass and start messing with a man/womans life! Look at Caterpiller, those poor members have never regained what they lost and no body who goes out on strike ever does! Hang in there CERBERUS don't let those low lifes push you around!
framistat 1:28PM (10/08/2007)
It is likely too late to save UAW plants. The marketplace will determine which plants produce. There is no possible way for a UAW plant with $70 plus per hour in wages and bene's, plus draconian work rules to compete in a global market.
The workers can be union loyal and unemployed, or get smart and still have one of the best hourly jobs on the planet. Three guesses what they will do...:(
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airport krishna 8:33PM (10/08/2007)
As if. As if the UAW is in a position to "target" anyone but themselves. Maybe the targeting is how the press continues to refer to the start of negotiations but if it's the UAW using that language it's a hint at how far out of reality they are. The car companies will continue to "target" Asia and elsewhere as sites for their new factories in direct proportion to the UAW targeting the domestic auto-makers. Maybe the UAW should be targeting how they'll help their workers transition into a new life outside the car business.
They played their last card long ago, the business realities have eclipsed them and this can't any more be about how to empathize with workers trying to preserve $30 an hour jobs.
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Americanpie 1:59AM (10/10/2007)
I have to believe,that those comments above, came from one of these sources. China, A big shot for a money hungry corporation like "Enron" An uneducated imigrant, who lives off our welfare system,or just ignorant individuals,that think they are knowledgable on whats happening in the corporate world,today.I see you as ignorant,greedy,and self absorbing ,Its plain to see,not one of you have a patriotic bone in their body.You appear to be the type of individuals that would sell your souls,or your country for a dime.
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