Another contract, another strike
Auto workers walk off the job after contract talks with Chrysler drag on past a deadline. The impact will be minimal, said Shawn Langlois in MarketWatch, unless the stoppage drags on. If it does, said Nat Worden in TheStreet.com, it will “test” a promise
Thousands of members of the United Automobile Workers union walked off the job at two Chrysler factories this morning after the two sides failed to meet a deadline the union set for a new contract. Talks continued despite the strike, which came on the heels of a two-day walkout at GM facilities in September.
What the commentators said
“The impact of the strike will likely be minimal,” said Shawn Langlois in MarketWatch, as long as it “lasts only a few days.” Five Chrysler factories are already scheduled for down time this week.
It might be tough getting the union to budge, said Tim Higgins in the Detroit Free Press. Cerberus Capital Management—the private-equity firm that bought Chrysler from Daimler—wants “health care concessions” similar to the ones the UAW gave General Motors. But GM’s deal builds on concessions the union granted GM and Ford in 2005. Chrysler didn’t get that deal—it was better off financially back then—and that “complicates” the negotiations.
The negotiations are “testing the mettle” of “Cerberus’ “Wall Street elite,” said Nat Worden in TheStreet.com. They promised to support the union when they took over, but an extended strike will cost them dearly. But there’s time. In fact, a short strike might actually help Cerberus cut Chrysler’s bloated inventory—one of its goals as it tries to cut costs and restore profits.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
MOST POPULAR ON THE WEEK
- Why is American internet so slow?
- What would a U.S.-Russia war look like?
- 7 ways to be the most interesting person in any room
- What the collapse of the Ming Dynasty can tell us about American decline
- Colorado’s new ‘drive high, get a DUI’ commercials are actually pretty clever
- 22 TV shows to watch in 2014
- Who are the real gay marriage bigots?
- Ukraine's fraught relationship with Russia: A brief history
- Sorry Belle Knox, porn still oppresses women
- 10 classic Sesame Street moments we wouldn't show today's kids
Subscribe to the Week