Mumbai: Negotiators of the United Auto Workers union have given Chrysler LLC a 72-hour notice of a potential strike even as the two reported progress in efforts to reach agreement on a new four-year contract, reports quoting sources close to the development said.
On Sunday, the UAW union gave Chrysler a 72-hour notice of a potential strike, reports said, adding, it was unclear exactly whether the notice would end on Tuesday or Wednesday.
Chrysler's previous agreement had been extended since 14 September while the UAW concentrated on talks with General Motors. On 26 September, GM and the union reached a settlement.
On 6 October, Chrysler, acquired by Cerberus Capital Management LP from DaimlerChrysler, received a 72-hour notice that the union is terminating further extensions, after which a strike is possible, the reports said.
The UAW had used a similar strategy in talks with GM before staging a two-day nation-wide strike, its first at America's top automaker in 37 years. GM later signed a tentative agreement with the UAW.
The union seems to be using its tactics before the GM agreement as a pattern for negotiations with Chrysler and Ford Motor Co. However, the two automakers have said their needs are different from GM's and may need altogether different deals.