Wednesday, 10 October 2007
Round 2: United Auto Workers strike again, this time against Chrysler
« GM’s OnStar program acts like big brother – but only when a thief is driving | Main | Chrysler strike ends; UAW ratifies General Motors labor contract »Just over two weeks ago approximately 73,000 members of the United Auto Workers walked off the job in protest of General Motors not reaching a labor agreement with the UAW. Two days later they were back on the assembly lines, as a tentative accord had been solidified.
Late this morning Chrysler union members went on strike, as night-long deliberations could not create consensus on Chrysler’s new labor contract. The walk-out reportedly affects 49,000 workers at 31 United States facilities. Within a day, Chrysler factories in Canada could freeze as their parts supplies are interrupted.
Neither Chrysler nor the UAW has said anything about the dispute publicly, but the main issue is familiar: Chrysler wants to free itself from health care costs by creating a union controlled retiree health care trust. Job security is also a top concern.
Due to excess inventory of various products, a short strike will actually allow Chrysler to sell down some slow-moving models. However, a few vehicles are more critical: the fast-selling Jeep Wrangler is one, as is the redesigned – and just launched - Dodge Grand Caravan and Chrysler Town & Country. Both need to be in showrooms to maintain their momentum.
Source: Automotive News [Subscription required] and the Detroit Free Press
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