Chrysler Cars

UAW and Chrysler will not reopen contract

Chrysler rebuffed the union’s request for a reopening because the union wanted to set a deadline for completing the talks, backed by the right to strike. However, Chrysler did offer to discuss modification of the pay and benefit provisions of the contract, despite its contention that matching Ford’s and GM’s pay and benefit levels would result in labor costs higher at Chrysler than those at GM and Ford because of a higher proportion of retired employees drawing pensions and medical benefits at Chrysler.

The union responded to Chrysler’s decision by calling for a meeting of its Chrysler Council, composed of 150 local union officials. At the meeting, the union leaders decided not to accept Chrysler’s offer because of the lack of the strike weapon. As a result, bargaining will not start until August 1985.