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October 12, 2008 10:39:18 AM CDT

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Chrysler to Cut Non-Union Jobs

Posted Oct 9, 07 2:27 PM CDT in US,  Business 

(Newser) – With Chrysler deep in talks on a new contact with the UAW—the clock is ticking on a strike deadline tomorrow morning—sources tell the Detroit Free Press that cuts to non-union employees are in the works. Loss of about 1,600 salaried and contract jobs is expected, on top of the 14,000 layoffs over the next 3 years announced as part of a restructuring in February.

The timing is seen by some as a move to push UAW to close the labor deal. "It's all about everyone sharing the pain,'' one analyst told Bloomberg. Unlike GM, privately held Chrysler is seen as very vulnerable to a job action—the company lost $2 billion in the first three months of the year. "It could be the end of the company," said one expert.

Sources Detroit Free Press, Bloomberg

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United Auto Workers President Ron Gettelfinger, center, sitting with members of the UAW negotiating team addresses the media during a news conference after opening the 2007 contract talks at the Chrysler...   (Associated Press)
Hundreds of new cars wait in a holding area for new Chrysler automobiles near a railroad yard in Auburn, Wash. on Saturday, Oct. 6, 2007, in this aerial photo. As negotiations continued Monday, Oct. 8...   (Associated Press)
Chrysler vehicles are loaded aboard a hauler at the Jefferson North Assembly plant in Detroit, Monday, Oct. 8, 2007. The United Auto Workers has set a deadline of 11 a.m. Wednesday to reach a contract...   (Associated Press)
Chrysler LLC Vice Chairman and President Jim Press stands next to the company's logo at the automaker's headquarters in Auburn Hills, Mich., Monday, Oct. 1, 2007. Chrysler may need to trim some of its...   (Associated Press)
Unsold 2007 Grand Cherokees sit in a row at a Chrysler/Jeep dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Sept. 16, 2007. Orders to U.S. factories fell in August by the largest...   (Associated Press)
A price reduction is noted on the windshield of an unsold 2007 Commander at a Chrysler/Jeep dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Sept. 16, 2007. Automakers report...   (Associated Press)
Unsold 2007 Commanders sit in a long row at a Chrysler/Jeep dealership in the southeast Denver suburb of Centennial, Colo., on Sunday, Sept. 16, 2007. The Commerce Department reported Wednesday, Sept....   (Associated Press)
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