Chrysler, UAW open formal talks

It was all handshakes and smiles Friday as the United Auto Workers formally opened contract talks with Chrysler Group, and while both sides were cordial, it didn’t take long for their differences to surface.

UAW President Ron Gettelfinger, while repeatedly refusing to answer specific questions about bargaining strategy, told reporters that the union already has done a lot to make the Detroit Three more competitive.

He cited healthcare concessions for General Motors Corp. and Ford Motor Co., and approval of buyout and early retirement packages that let them reduce their work forces.

“We are working with the companies to get where they need to be, and they’re going to be strong, viable companies in the final analysis,” Gettelfinger said. In the past he has said the union was not in a concessionary mode.

But the automakers have each said they needed to reduce labor costs to become competitive with their Japanese rivals, Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co.

Industry analysts have said reducing costs was critical to the domestic companies’ survival amid intense global competition. The three automakers lost a total of $15 billion last year and only GM has shown a profit this year despite continued losses in North America.

Chrysler Chief Executive Tom LaSorda said the negotiations were an opportunity for true change.

“Negotiations are difficult. This one will be no exception. The challenges we are facing are clear,” he said.

The comments came after the traditional ceremonial handshakes that formally kick off the talks, but negotiations have been underway now for months. Similar events will take place Monday with Ford and GM. The UAW’s national contracts with the Detroit Three expire Sept. 14.