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Progress reported in Chrysler labor talks

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From Times Wire Reports

detroit -- Negotiators with the United Auto Workers union and Chrysler have made progress on efforts to reach a new four-year labor contract, but a person briefed on the talks said Sunday that much work remained.

“There are a bunch of committees” that have to reach agreement before a deal can be signed, said the person, who requested anonymity because the talks are private.

Negotiators returned to the bargaining table Sunday after breaking Saturday night, the person said.

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Chrysler spokeswoman Michele Tinson said Sunday that the two sides were making progress.

“We remain optimistic,” she said.

A message left for UAW spokesman Roger Kerson was not immediately returned.

General Motors Corp. has reached a tentative agreement with the UAW that GM workers are voting on.

The UAW’s contracts with Chrysler, Ford Motor Co. and GM were originally set to expire Sept. 14.

The UAW selected GM as the lead company and strike target and reached a tentative agreement Sept. 26 after a two-day walkout.

The deal won’t go into effect until it’s ratified by GM workers, a process expected to end Wednesday. Chrysler and Ford have been extending their contracts indefinitely.

The UAW typically reaches an agreement with one automaker and then tries to get the others to match the terms. But industry analysts have said that the GM deal probably won’t fit Chrysler and Ford exactly and that changes are likely.

The UAW represents about 49,000 hourly workers at Chrysler, making it the smallest union-backed workforce of the domestic automakers. The company also has around 78,000 retirees and surviving spouses represented by the UAW.

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Chrysler recently became a private company, which could be a factor in the talks. Private equity firm Cerberus Capital Management bought a majority share of Chrysler in August from DaimlerChrysler.

As a private company, Chrysler no longer has shares and isn’t required to file earnings reports.

Chrysler pays its workers an average of $75.86 an hour in wages, pension and healthcare costs, the highest among the Detroit automakers.

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