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Chrysler, UAW to Resume Formal Talks

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Reuters

Union and Chrysler Corp. bargainers are scheduled to resume formal talks today to end a crippling parts plant strike, even though a union official said Sunday that neither side has shown any sign of softening its position. Despite a “cooling off” period, United Auto Workers Local 51 President Sam Nardicchio said informal communications over the last few days have gone nowhere. About 1,800 members of Local 51 struck Chrysler’s Mound Road engine plant in Detroit early Thursday. Workers are demanding that Highland Park, Mich.-based Chrysler drop its plans to shift production of drive shafts from the plant to an outside supplier, a move that could cost the local 250 jobs. The walkout forced Chrysler to suspend production Friday at four pickup truck, sport-utility and full-size van assembly plants. The facilities are located in Detroit and nearby Warren, Mich., St. Louis and Windsor, Canada. About 12,080 workers are idled by the move. Chrysler spokesman Tony Cervone said that other than some individual shift adjustments, the company does not plan to idle any more plants as a result of the walkout. Analysts have estimated a prolonged strike could cost the auto maker about $70 million a week in lost profit.

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