Business Day.com, October 8, 2007, Monday

Business Day.com, October 8, 2007, Monday
http://www.businessday.co.za/articles/companies.aspx?ID=BD4A581666

Union to focus on Chrysler
John Lippert

CHICAGO — Chrysler has been chosen as the next target for union contract talks as United Auto Workers (UAW) seeks to extend terms of last month’s accord with General Motors (GM) , sources with direct knowledge of the matter said at the weekend.

The union would further delay discussions with Ford Motor to focus on Chrysler, the third-largest US-based car maker, said the sources, who asked not to be identified because the talks were private.

The selection means that UAW president Ron Gettelfinger would bargain with Chrysler’s new private equity owner and a chief with two months’ experience in the industry.

Former Home Depot CEO Robert Nardelli joined Chrysler in August after Cerberus Capital Management bought the vehicle maker from the former DaimlerChrysler of Germany.

“There’s no reason to think that Chrysler won’t come to an agreement similar to GM’s,” said Harry Katz, a labour relations professor at Cornell University in Ithaca, New York.

“How could Chrysler take a strike? With GM and Ford operating, plus the imports, the cost of that would be incredible.”

The highlight of the GM contract was the company’s commitment to shed $50bn in retiree health-care obligations by putting $29,9bn into a union-run retiree-health fund.