AFSCME 3357-HOF'S BLOG

Chrysler in the Crosshairs
UAW says contract or Strike by Wednesday

An interesting battle is shaping up between the UAW and Chrysler, LLC. The UAW set a deadline of Wednesday to either come up with a tentative contract or strike Chrysler. This will be the first contract under Cerberus management. Even though General Motors was fiscally overdrawn at the time of its contractual negotiations, GM could look forward to a fairly broad lineup of competitive new products in the pipeline. Chrysler is somewhat more solvent in today's dollars, but it's future product pipeline is really an empty cupboard. The prospect of a strike probably doesn't scare Cerberus too much. Even though we are only a month into the new model year, six plants are temporarily idled for lack of business. With Cerberus, the UAW will be dealing with private management who are very capable of, and possibly predisposed to, breaking up the company.

What can we expect from the new Chryslerberus contract? Expect lots of pressure on healthcare benefits for both active and retired workers. If there is a VEBA, you can expect that it will not be funded at the same level as the GM plan.