The following is an excerpt from CHRISTINA ROGERS and JOHN D. STOLL | October 6, 2015 | WSJ.com |
The United Auto Workers union is threatening a strike at Fiat Chrysler Automobiles NV’s plants beginning Thursday, as efforts broke down to salvage a tentative contract that was rejected by union members last week.
The UAW told the company it is terminating its current labor contract at midnight on Wednesday, signaling a strike could take place if a deal isn’t reached. If the union follows through, it would represent the first walkout against a U.S. auto maker since 2007, before two of the Detroit car companies restructured under bankruptcy protection.
It was unclear on Tuesday if the UAW would strike all of Fiat Chrysler’s 23 assembly and parts plants in the U.S., or employ targeted stoppages that hit production pinch points.
Workers at a transmission plant in Indiana were advised to prepare for a work stoppage, a move that would shut other plants that build Jeeps and Ram trucks—among the most profitable of Fiat Chrysler’s vehicles.
The strike threat is “absolutely real,” said Art Schwartz, president of Labor and Economic Associates, an Ann Arbor, Mich., labor relations consultancy.
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