Tuesday, April 15, 1997

Talks to settle Chrysler strike begin

By BRIAN S. AKRE AP Auto Writer

DETROIT (AP) - Chrysler Corp. and the United Auto Workers began negotiations Monday to settle an engine plant strike that has all but shut off the automaker's production of pickups and sport utility vehicles.

In Oklahoma City, meanwhile, talks continued and some progress was reported in a strike that entered its 10th day at a General Motors Corp. assembly plant. The plant produces the Chevrolet Malibu and Oldsmobile Cutlass.

"They're making some progress but they were not specific," GM spokesman Bill Betts said in Detroit.

Negotiators in the Chrysler dispute tried to quickly resolve smaller issues so they could tackle the major ones, said a source close to the talks, who spoke on condition of anonymity.

Monday's talks were the first since the walkout began late Thursday at Detroit's Mound Road engine plant.

The strike by 1,800 workers forced Chrysler to halt production Friday at four assembly plants that produce Dodge Ram and Dakota pickups, Dodge Ram vans and Jeep Grand Cherokee sport utility vehicles.

The plants are in the Detroit area, St. Louis and Windsor, Ontario. About 12,080 assembly workers have been idled, and Chrysler is losing production of 3,000 trucks a day.

Those idled at the four assembly plants are eligible for union benefits and unemployment insurance, but are not getting any compensation from Chrysler, company spokesman Tony Cervone said.

Major issues at the engine plant include Chrysler's efforts to shift more rear-drive parts production to outside suppliers, plant health and safety, and workplace discrimination against minority workers. The plant also makes drive shafts.

In Oklahoma City, negotiators met through the weekend.

"There's some issues that have been resolved, but there's obviously still some issues that we're working on," GM spokesman Chuck Licari said. "Progress has been made."

GM will not say how much production it has lost as a result of the strike. The Oklahoma City plant had been building the redesigned midsize cars for only a few months and had not yet reached full production.

"They were still in a launch phase," Licari said.

Most production of the Malibu is done in Oklahoma City; it also is produced in Wilmington, Del. Oklahoma City is the only plant where the Cutlass is built.

GM's chief financial officer, J. Michael Losh, played down the strike's effect, calling it "relatively small."

"It's important to us, but it's one assembly plant out of 25," he said during a news conference on GM's first-quarter earnings. "We're hopeful it will be resolved soon."

About 3,500 UAW members went on strike April 4 over staffing issues and "outsourcing," the practice of farming out union parts jobs to independent suppliers.

UAW spokesmen Reg McGhee in Detroit said there was no new information on how talks were proceeding Monday.