U.A.W. Shelves Chrysler Talks and Turns to Ford

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Source: The New York Times

DETROIT — The United Automobile Workers union said late Wednesday that its next target for reaching a new labor agreement would be the Ford Motor Company, signaling that it was having difficulty coming to terms with Chrysler.

After the U.A.W. announced a tentative contract with General Motors last week, it was widely expected to focus on Chrysler next with the goal of striking a more lucrative deal with Ford by leaving that company last. Instead, the union announced a four-week extension of the old contract with Chrysler — hours before an earlier extension was set to expire — and then said it was turning its attention to Ford.

“I have just concluded a meeting with President Bob King, and I am proud to announce that we have been chosen as the next department to begin the final stages of negotiations, and not Chrysler as previously speculated,” Jimmy Settles, the U.A.W. vice president in charge of negotiations with Ford, wrote in a message to workers that the union posted on Facebook. Mr. Settles wrote that he is eager “to begin intense discussions with the company and work towards a tentative agreement.”

The delay in reaching a deal with Chrysler follows a critical letter that Chrysler’s chief executive, Sergio Marchionne, sent last week to Mr. King. Mr. Marchionne chided Mr. King for failing to show up to finalize a settlement — Mr. King had chosen to remain in talks with G.M. rather than divide his time between the two companies — and said the two had “failed” workers by not finishing talks before the previous contract was set to expire.

Read more: http://www.nytimes.com/2011/09/22/business/uaw-shelves-chrysler-talks-and-turns-to-ford.html