Chrysler workers walking off job in Kokomo

Kokomo Tribune

Striking Chrysler workers carried picket signs and gathered at the entrances to Kokomo Transmission Plant Wednesday afternoon as the United Auto Worker union strike against Chrysler continued.

Thousands of Chrysler employees, including around 6,000 in Kokomo, went on strike at 11 a.m. today.

Shortly after 11 a.m., Kokomo police reported traffic congestion around U.S. 31 and Lincoln Road and Boulevard, as many workers from Kokomo Transmission Plant and Kokomo Casting Plant were seen leaving the factories.

It's the first UAW strike against Chrysler since 1997, when one plant was shut down for a month, and the first strike against Chrysler during contract talks since 1985.

The United Auto Workers union set an 11 a.m. deadline for an agreement with Chrysler. Though progress was reported on contract negotiations Wednesday morning, several key issues remained unresolved.

Tom LaSorda, a Chrysler president and vice chairman, is leading the automaker's negotiations with UAW President Ron Gettelfinger at the Chrysler's Auburn Hills headquarters.

The UAW apparently is not striking at five plants that Chrysler already had shut down this week because of sagging sales of some models, according to a person familiar with the walkout who asked not to be identified because the situation is in flux.

The strike is the second nationwide walkout against a Detroit automaker in less than one month and would come as the U.S. auto industry tries to make itself more competitive against foreign rivals.

The talks at Chrysler also come after an ownership change that gave a controlling stake to private equity firm Cerberus Capital Management, adding even more uncertainty to the negotiating process.

A strike against General Motors Corp., from Sept. 24 to Sept. 26, resulted in a new 4-year labor agreement that's believed to be the template for the union as it negotiates contracts with Chrysler and Ford Motor Co.

Though experts have said a protracted strike against Chrysler could be devastating to the Auburn Hills automaker, a short one might be softened by the fact that Chrysler has idled five assembly plants and one engine plant this week.

Michael Robinet, vice president of global forecasting for CSM Worldwide, said he doesn't believe a strike would last long.

"A one- or two-day walkout will have a negligible impact," he said. If it progresses into a couple of weeks, then dealers are going to start to see supplies of some of the hotter-selling vehicles, such as the Wrangler and the minivan, interrupted, he said.

Chrysler has 24 U.S. manufacturing facilities, including 10 assembly plants, but not all would be affected by a strike. The automaker had already planned to idle five assembly plants and some factories that make parts for short stretches during the next two weeks in an effort to adjust its inventory to a slowing U.S. automotive market.