Wednesday, October 10, 2007

Chrysler Strike Deadline 11:00 AM Today

Collective bargaining between the UAW and Chrysler, LLC., is expected to continue right until the deadline for strike, 11:00 AM today. What's going to happen then is anybody's guess. Unlike the GM-UAW contract, there have not been leaks suggesting the parties are very close to a deal.

Chrysler dealers are awash in inventory for everything except the 2008 minivans. Chrysler has already scheduled temporary shutdowns for six plants. Just yesterday, Chrysler announced layoffs of thousands of white collar workers and contractors.

There is a very real possibility of a worst-case scenario for the UAW here. The UAW strikes. Cerebus then uses costs of a strike as a justification for shutting the company down and selling it off piecemeal, a strategy that many people have said has always been Cerebus's plan for the company. The retirees get whatever has been set aside already, nothing more. It seems to me that it would be better to just continue working under the current contract until the company threatened a lock-outm then negotiate on give-backs. What do I know, I'm just a lawyer.

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