Chrysler's Workers Set Strike Deadline, People Say

[Omaha Steve]

Source: Bloomberg

By John Lippert

Oct. 8 (Bloomberg) -- Chrysler LLC has been given until tomorrow to reach an agreement on a new contract with the United Auto Workers or face a possible strike, people familiar with the negotiations said.

The automaker's previous agreement had been extended since Sept. 14 while the UAW concentrated on talks with General Motors Corp. On Sept. 26, GM and the union reached a settlement that the UAW is using as a model in the Chrysler talks.

http://www.bloomberg.com/apps/data?pid=avimage&iid=iInD.xl5I81A

Chrysler, owned by Cerberus Capital Management LP, on Oct. 6 received 72 hours notice that the union is terminating further extensions, after which a strike is possible, the people said. The UAW employed a similar strategy in the GM talks before staging its first national walkout at the automaker in 37 years. Following a two-day strike, a tentative agreement was announced.

``At GM, the UAW established what it wants as a pattern,'' said Dan Luria, an analyst at the Michigan Manufacturing Technology Center in Plymouth. ``By canceling the extension, the union is saying, `Don't waste our time.'''

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=azJvcOo_yEsk&refer=news

[madrchsod]

1. chrysler is in such bad shape

cerberus may let them go on strike to clear out the inventory that they can`t sell.