Wednesday 12 October 2011

UAW and Chrysler to Continue Negotiations Through the Weekend (ContributorNetwork)

The UAW gave a clue as to the state of its negotiations with Chrysler on Friday by calling local union leaders to a meeting to be held in Detroit on Monday. Word of the upcoming gathering reached media outlets that evening, leading to widespread speculation the union and the last remaining holdout of Detroit's Big 3 were getting closer to a deal. By late Saturday, neither UAW President Bob King nor Chrysler CEO Sergio Marchionne had confirmed that was the case.

If the two factions are nearing a contract agreement, it would be sooner than expected, given the reported difficulties they faced during negotiations last month. Talks between the sides were widely reported to have faltered in mid-September, although King and Marchionne deny that they ceased completely.

Here are some of the key points in the ongoing negotiations between Chrysler and the UAW.

* GM was the first of Detroit's Big 3 to negotiate a new contract deal with the UAW. That deal was finished in late September, and voted on by GM's UAW workforce a week later. Ford completed its contract negotiations last week, and that company's workers will begin voting on their agreement deal this week.

* Traditionally, Detroit's Big 3 have had individual contract deals with the UAW that closely mirror each other. Marchionne said at the beginning of negotiations that Chrysler's workers should not expect that to be the case this time.

* Marchionne has repeatedly highlighted the fact Chrysler has not rebounded as solidly as GM and Ford since the economic crash and the company's subsequent bankruptcy and government bailout. On Friday, he called the new contract agreements the UAW had been able to negotiate with the two other Detroit automakers "overly generous."

* Most of the points of the proposed new contract agreement between Chrysler and the UAW were supposedly settled some time ago. But King reportedly turned his focus to completing negotiations with GM in September when talks with Chrysler stumbled over health care cost-sharing and the use of entry-level workers.

* Those two issues, along with the question of signing bonuses, appear to be the hold-ups in the latest round of negotiations as well.

* Through the terms of the 2009 government bailout, the UAW is prevented from initiating a strike against Chrysler should the union's terms not be met. The only other option left to the two parties if an agreement cannot be reached is that of binding arbitration.

* King and Marchionne have said they don't want to use that option, although sources close to Marchionne have reportedly said the CEO will go that route if necessary. It is thought that doing so could potentially save Chrysler money but may well sour workers' relationship with the company.

* King and Marchionne confirmed that negotiations between the UAW and Chrysler are expected to continue straight through the weekend.

Vanessa Evans is a musician and freelance writer based in Michigan, with a lifelong interest in politics and public issues.


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