Fiat Chrysler, UAW at Table as Strike Looms

Before you go, we thought you'd like these...
Before you go close icon
Fiat Chrysler Union Talks Seen Contentious as Merger Urged
Jeff Kowalsky/Bloomberg via Getty ImagesSergio Marchionne, CEO of Fiat Chrysler Automobiles speaks at the start of labor negotiations with the United Auto Workers union in Detroit in July.
By Bernie Woodall

DETROIT -- As the threat of a strike hangs over them, negotiators from Fiat Chrysler Automobiles (FCAU) and the United Auto Workers union continued to meet Wednesday morning, a union spokesman said.

The union Tuesday called for a strike against Fiat Chrysler's U.S. operations at 11:59 p.m. Eastern time unless a new agreement on a four-year contract is reached or there is movement toward one.

The spokesman wouldn't offer details of the talks including whether the company was willing to sweeten the deal it offered the UAW that was approved Sept. 18 by the union leaders but rejected last week by 65 percent of its rank-and-file Fiat Chrysler membership.

The company's U.S. production plants are concentrated in the Midwest, in Michigan, Indiana and Ohio.

The last time the UAW called a strike against Detroit automakers who currently make up about 37 percent of the union's membership, was in 2007 at Chrysler and General Motors.

General Motors (GM) and Chrysler were prohibited from striking until this year as part of the 2009 agreement with the U.S. government that arguably saved the companies from extinction.

An auto industry analyst, using an estimated profit per vehicle of about $1,100 in the first half of the year, estimated that Fiat Chrysler could lose $40 million of operating profit and at least $1 billion of revenue weekly in a strike of all its U.S. production plants.
Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading