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As General Motors contract vote proceeds, UAW prepares deeper concessions at Chrysler

by wsws (reposted)
Wednesday, October 10, 2007 :Negotiations between the United Auto Workers union and Chrysler LLC continued Tuesday on a new four-year labor agreement. The UAW set an 11 a.m. Wednesday deadline to strike the number three US automaker if no progress towards reaching a deal was achieved. The discussions at Chrysler are proceeding as the UAW bureaucracy is pushing General Motors workers to accept a contract containing enormous concessions, including a two-tier wage system, the setting up of an underfunded union-run health care fund for retirees, and a wage freeze.
The union chose GM as the lead negotiating company. Traditionally Detroit’s Big Three automakers—General Motors, Ford and Chrysler—have accepted the general outlines of the deal reached with the lead company. However, Chrysler, which was bought by the private equity firm Cerberus Capital Management in August, has made clear that it expects deeper concessions from its 49,000 unionized workers than those granted by the UAW to GM.

According to people close to the talks who spoke with the Detroit News, Chrysler is opposed to making the slightest commitments to retain jobs at its factories. “Specifically,” the newspaper reported, “Chrysler is refusing to promise future products for its US plants because the new private automaker wants flexibility to downsize US operations and expand internationally.” The UAW has used fraudulent job guarantees as one of the main selling points for the GM contract.

The Wall Street Journal reported that the company is also resisting language that would prevent it from outsourcing jobs to non-UAW workers at its US factories.

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