Oct
10
Chrysler: A Big, Big, Deal
Posted by: gordiedutka | October 10, 2011 | 1 Comment
According to a source from reuters.com, the United auto Workers (UWA) President Bob King told the union leaders at Chrysler plants that a four-year labour contract should be ready for Wednesday. Due to Chrysler’s “weaker financial position”, they are under a lot more pressure than both Ford and GM, which have reached deals that, according to Chrysler C.E.O. Sergio Marchionne are “over generous”. Chrysler union leaders have seen the types of deals that Ford and GM have made, and negotiations will undoubtedly get very ugly, as Chrysler looks for a big bargain on this labour deal.
Chrysler plant workers will inevitably want similar benefits that Ford and GM have offered, which Chrysler simply cannot afford to give. The previous week had consisted of “intense negotiations” where both sides were not in agreement, both sides will surely continue to fight hard; I don’t see this deal getting done by Wednesday.
Marchionne is pushing for the fredom to hire more low-wage employees and give far less bonuses than GM and Ford. We’ve seen how auto makers have destroyed their companies through massive legacy debts, and Marchionne must strap on some pads and brace himself for a bargain battle in order to save Chrysler.
Comments
1 Comment so far
Thank you for your post, Gordie.
What do you think the consequences would have been if the government had out bail out automakers such as Chrysler?
Looking forward to your next post!