Thousands of workers at US car firm Chrysler have started to walk out from selected plants after a union deadline to settle a pay dispute passed.
Thousands of workers at US car firm Chrysler have started to walk out from selected plants after a union deadline to settle a pay dispute passed.
Unions had set a deadline of 1500 GMT to reach a settlement over planned changes to pay, healthcare, and other benefits for 49,000 workers.
Unions had set a deadline of 1500 GMT to reach a settlement over planned changes to pay, healthcare, and other benefits for 49,000 workers.
Unions are concerned that Cerberus, Chrysler's private equity owner, wants to roll back existing pay deals.
Unions are concerned that Cerberus, Chrysler's private equity owner, wants to roll back existing pay deals.
The firm, meanwhile, says it must remain competitive.
The firm, meanwhile, says it must remain competitive.
'Further apart'
'Further apart'
Workers downed tools at Chrysler sites in Sterling Heights and Warren, Michigan, according to union officials, Reuters news agency reported.
Workers downed tools at Chrysler sites in Sterling Heights and Warren, Michigan, according to union officials, Reuters news agency reported.
Earlier, the head negotiator for the United Auto Workers (UAW) union at Chrysler said it would be selective about strikes and that work at five plants would not be interrupted.
Earlier, the head negotiator for the United Auto Workers (UAW) union at Chrysler said it would be selective about strikes and that work at five plants would not be interrupted.
It is the first time since 1985 that Chrysler workers have called a strike during contract negotiations.
It is the first time since 1985 that Chrysler workers have called a strike during contract negotiations.
The dispute follows a similar strike at GM in September, which was resolved when staff secured guarantees over working conditions. The UAW has still to reach a settlement with Ford.
The dispute follows a similar strike at GM in September, which was resolved when staff secured guarantees over working conditions. The UAW has still to reach a settlement with Ford.
Analyst David Healy of Burnham Securities said: "My impression is that the two sides are further apart than they were in the case of GM and that Chrysler is well prepared for a strike.
Analyst David Healy of Burnham Securities said: "My impression is that the two sides are further apart than they were in the case of GM and that Chrysler is well prepared for a strike.
"[Chrysler] has a lot of inventory and some of the plants are shut down anyway. It could go for a while."
"[Chrysler] has a lot of inventory and some of the plants are shut down anyway. It could go for a while."
Chrysler has 24 US manufacturing sites, including 10 assembly plants.
Chrysler has 24 US manufacturing sites, including 10 assembly plants.
Loss-making Chrysler was formerly part of DaimlerChrysler, but was recently spun off.
Restructuring
Loss-making Chrysler was formerly part of DaimlerChrysler - now renamed Daimler.
The German group sold a majority 80.1% stake in Chrysler to Cerberus for 7.4bn euros ($10.1bn; £5bn).
The separation comes almost a decade after the two firms merged in a $36bn deal.
Chrysler - like other US firms - has faced increasing competition from more efficient Japanese car firms.
In a bid to mitigate against losses, the group announced huge reorganisation plans in February that involved cutting 13,000 jobs.
Are you affected by the walkout? Do you or anyone you know work for Chrysler? What do you think will be the implications of the walkout? Send us your comments using the form below.
Are you affected by the walkout? Do you or anyone you know work for Chrysler? What do you think will be the implications of the walkout? Send us your comments using the form below.
