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Union reps in Chrysler talks uneasy on GM deal: report

October 2nd, 2007 · No Comments

News.Enttwist.com:NEW YORK (Reuters) - Union negotiators for workers at Chrysler LLC have signaled reluctance to tacitly approve a deal that mirrors the tentative one with General Motors Corp (GM.N), the Wall Street Journal said on its Web site, citing people familiar with the negotiations.

United Auto Workers officials on the Chrysler bargaining team met on Sunday to discuss the GM deal, and most members decided against supporting the agreement because of a provision for lower wages and benefits for newly hired workers, the report said.

These officials are also worried about the UAW’s willingness to set up a new healthcare trust, the article said.

Meanwhile, management officials at Ford Motor Co (F.N) and Chrysler are concerned by GM’s decision to divulge significant details about new vehicle programs and timing as part of securing its settlement, the report said, citing others familiar with the matter.



The article said the problems do not necessarily imperil the prospects of reaching similar deals to the one reached last week with GM.

Spokespeople for Ford, Chrysler and the UAW were not immediately available for comment.

Chrysler was taken private by Cerberus Capital Management in a $7.4 billion deal that closed in August.




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