Chrysler LLC workers began walking out on the job this morning, after the company couldn't make a deal with the United Auto Workers (UAW) by the proposed 11 a.m. deadline.
Chrysler and UAW will continue their talks today as workers file out of assembly lines. The automaker and worker's union have been in negotiations regarding retiree health-care costs, outsourcing, and staff reduction. Cerberus Capital, Chrysler's new primary private-equity owner, allegedly plans to reduce salaried and contract staff by 3,500, 75% more than originally stated.
The beginning stages of the walk-out look eerily similar to what General Motors experienced last month, after workers left their posts for 2 days during GM talks with UAW. During negotiations in mid-September, shares of GM plummeted around the 29 level, but rocketed to stay steady at the 37 level once the parties reached an agreement.
If the Chrysler strike resembles the GM strike, the impact on production shouldn't be too significant, as Chrysler had coincidentally scheduled 5 of its factories on down time for the week.