View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 19, 2003

USA: Wall Street analyst predicts Chrysler will be UAW target this year

A Wall Street analyst expects the United Auto Workers to target DaimlerChrysler AG's Chrysler unit in car industry contract talks this year, Associated Press (AP) reported.

By bcusack

A Wall Street analyst expects the United Auto Workers to target DaimlerChrysler AG’s Chrysler unit in car industry contract talks this year, Associated Press (AP) reported.

Such a strategy could help improve worker benefits and bring modest wage increases at all of the Big Three car makers, offset by job cuts of about 5% per year, mostly through attrition, Prudential Financial analyst Michael Bruynesteyn wrote Tuesday, according to AP.

AP reported the Detroit Free Press quoted Bruynesteyn as saying General Motors would be hurt most by such an outcome, because it has by far the most retired workers.

The UAW told AP it is too soon to discuss any such decision. The union traditionally picks Ford, GM or Chrysler for lead negotiations and the other two generally follow the resulting contract terms, AP said.

Acording to AP, Bruynesteyn said the key issues for car makers are rapidly growing benefit costs and the relative inefficiency of their plants, compared with the top US plants of Japanese rivals.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto