Chrysler Industrial Action Looms

US car manufacturer Chrysler could be on the brink of facing industrial action, with staff preparing the picket lines in the face of an ongoing employment dispute for tomorrow morning if some common ground isn’t found over the course of the night.

The dispute has arisen over planned changes in working conditions for the company’s employees, which will see an overhaul in payment terms and benefits, as well as staff healthcare and holiday allowances.

The Union responsible for handling staff affairs is looking to prevent the Chrysler ownership from pulling in current pay deals to a more competitive market rate, in a move the company says is essential to avoid job cuts.

Both parties look set to be negotiating through the night to try to come to some conclusion before the official action deadline of 11.00 am tomorrow, local time, at which point employees will take action against the company.

United Auto Workers manages almost 50,000 Chrysler employees, and has set about looking for guarantees that it will maintain the $1 an hour wage increase introduced last year in current market climates.

General Motors employees were also recently on strike over pay and general working conditions, with a two-day strike held over the level of company investment in retirement health care funds for its employees. The action ended with a $30 billion investment in the fund by General Motors.

Overall analysts have suggested this is underlining the current harsh market realities for US car manufacturers in light of the economic downturn and worldwide credit crunch.

If pay deals are not brought down in light of these strikes, it may look to be necessary to see job cuts across certain US production stations in the near future, which could be catastrophic for the US car industry and the economy as a whole.

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