UpdateChrysler workers end US walk-out

10 October 2007 23:53  [Source: ICIS news]

(Updates throughout with comment from labour leader)

HOUSTON (ICIS news)--US automaker Chrysler Corporation reached a deal with striking workers on Wednesday after a six-hour walkout.

United Automobile Workers (UAW) president Ron Gettelfinger did not provide details of the agreement.

“This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company,” Gettelfinger said.

The strike was of interest to the US chemicals industry because cars are an important end-market for a wide range of polymers.

The union called a strike at Chrysler on Wednesday after the two sides failed to reach a contract agreement, media reports said.

The union represents 45,000 Chrysler employees, reports said. The strike did not cover five Chrysler plants, four of which have been idled.

North American vehicles contain an average of about $2,200 (€1,562) in chemicals, according to the American Chemistry Council (ACC). A reduction in US car production could also mean a drop in demand for chemicals.

Each vehicle has an average of 335 lb (152 kg) of polymers, according to the ACC.

The strike may have little effect initially, as Chrysler said it had a 71-day supply of automobiles at the end of September, according to news reports.

The Chrysler strike follows the two-day GM walkout in September.

($1.00 = €0.71)

(Additional reporting by John Waggoner)

By: Al Greenwood
+1 713 525 2653

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