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In ongoing negotiations with Chrysler LLC, the United Auto Workers have reputedly issued a warning that the current contract extension will be terminated Tuesday, raising the potential of a strike unless an agreement is reached.
The report of the ultimatum came from Bloomberg although Chrysler has refused to comment and no official word regarding such a deadline has been forthcoming.
Such a move would be in keeping with the strategy the union used in its talks with General Motors, which led to a two-day national strike before negotiators forged a tentative agreement. UAW members are voting on the GM deal now, which the union hopes will be approved by October 10.
Chrysler could be in a better position to weather a strike than GM, given the company's current plans to idle six assembly plants this week including scheduled two-week closings at three factories that are UAW-represented. The decision came in response to slow sales for Chrysler products.
The sales picture actually figures into UAW President Ron Gettelfinger's negotiation strategy, which is apparently counting on the automaker's increased willingness to compromise and seek common ground to prevent further sales downturns during a strike.
Sales for Chrysler fell in September by 2 percent placing the company with a market share of 12 percent behind GM, Toyota, and Ford.
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