Contract negotiations between the UAW labour union and Chrysler are reported to have hit obstacles.
Reports emanating from sources in the US suggest that the negotiations over a new four-year contract have hit disagreement between the two sides on key financial issues.
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A particular sticking point is said to be the number of workers who would be paid an entry-level wage under a two tier wage structure. The UAW wants a cap on the lower (non-UAW) tier.
Analysts say that such a disagreement is not unexpected at this stage, with both sides seeking to see how far they can push the other before compromises and fall-back positions come into the equation.
The contracts between the UAW and the Detroit automakers are the first since the crisis of 2009 which saw GM and Chrysler enter bankruptcy reorganisation in the US.
GM and the UAW reached a tentative agreement last week that is expected to be ratified by the UAW’s GM workers.
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By GlobalDataChrysler CEO Sergio Marchionne is said to be taking a tough stance on labour costs at loss-making Chrysler. However, a resumption of talks between the two sides is expected next week.
Contract negotiations at Ford are continuing.
