UAW gives Chrysler Wednesday deadline, strike possible
As we reported earlier, the UAW is continuing its negotiation talks with Chrysler LLC for a new contract, having chosen the Auburn Hills-based automaker as its next dance partner after reaching a tentative agreement with General Motors on September 26th. The UAW's contract with Chrysler LLC expired on September 14th, but the union extended the deadline for Chrysler (and Ford) while it was focusing on negotiations with General Motors. As we all know, the UAW chose to strike against GM, and it may do the same to Chrysler if a tentative agreement isn't reached by
Though the UAW hopes to use its agreement with GM as a template for one with Chrysler, there are additional factors to consider. First and foremost is the fact that Chrysler was not given concessions on retiree health care back in 2005 that were given to both GM and Ford. Even if a VEBA account like the one in the UAW-GM contract is agreed upon, chances are retirees will be forced to accept concessions in their level of coverage to make up for the slight two years ago.
Of course, everyone is curious how well Chrysler's new owner, Cerberus Capital Management, is working with the UAW during these negotiations. Current Co-Vice Chairman of Chrysler, Tom LaSorda, who has seen his title dwindle down from CEO since the purchase, has an opportunity to shine in this talks. Handling negotiations with the UAW is part of his new job description, and considering Chrysler's stumble in the marketplace under his stewardship, now would be a good time for him to prove his worth to Cerberus.
[Source: Bloomberg, The Detroit News]
Get a WordPress.com Blog
Reader Comments (Page 1 of 1)
Biff Baxter All American 10:36AM (10/08/2007)
Congratulations, Gov. Granholm. The exodus of automotive companies from Michigan is picking up at an even faster pace.
I'm sure your new sales and service tax increase legislation of a week ago will mean even more companies leave the "Great Lakes State".
Reply
Dausman 11:08AM (10/08/2007)
I believe in the past some segments of manufacturing have moved from the northern section of the country to the southern region because of plentiful labor that was cheaper...now , one of those,the textile industry has essentially abandoned the southern states for much cheaper labor overseas and south of the border.....the Germans, Japanese and Koreans auto manufacturers have found a home in several southern states and doing quite well I believe and yes,there are still some US auto facilities in the south....Ford left ATL several yrs ago.
GM, Ford, Chysler..dump the UAW.....move your plants where it warmer....the jobs would be much more appreciated and not taken for granted.....a huge, massive undertaking at the very least...but it might be wise to keep jobs in the US.
Reply