Auto Workers Set Deadline for Chrysler Talks

Chrysler LLC faces a possible strike by the United Auto Workers if it does not reach a deal on a new contract with the union by Tuesday. After reaching a tentative agreement with General Motors last month that was to have served as a blueprint for the other automakers, the union is now focusing on Chrysler before tackling Ford Motor Co. Chrysler's previous contract with the union had been extended since September 14 during the GM talks, but on October 6 the UAW said it was terminating the extensions and gave Chrysler 72 hours to negotiate a deal, according to people familiar with the talks. No specific hour was set, and the move appeared to be an effort to avert the dragging out of talks as took place with GM before workers struck for two days. The union is seeking job guarantees similar to those granted by GM. The GM pact also included concessions on health care costs, which the automakers claim make them uncompetitive. GM workers will vote on their agreement Wednesday.

Sources: Bloomberg, Reuters, NY Times
Commentary: Analysts Doubt Advertised Savings in GM Deal • Why Are Ford and Chrysler Letting GM Lead Negotiations With the UAW?
Stocks/ETFs to watch: DAI, F, GM. ETFs: IYT. Competitors: NSANY, HMC, TM. Related: Cerberus Web Site • DaimlerChrysler News

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.