UAW Employees at Chrysler Begin Strike Action

The strike deadline came and went with no new contract, and now line workers for Chrysler have taken to the picket line.

UAW workers make up about 48,000 of Chrysler's employees, but not all of them will participate in the strike action. Some 12,000 plant workers won't be striking because their plants have already had operations suspended by Chrysler. This morning, on NPR, I actually heard one analyst say that a short strike might actually help Chrysler's bottom line, allowing it to get rid of some excess inventory.

Talks are ongoing, and it would probably be in everyone's interest for a new deal to get hammered out relatively soon. UAW can afford to hang on for quite a while, though: their strike fund has over $800 million in the bank. It will be interesting to see how Chrysler reacts under their new ownership, as they were bought by a private firm not too long ago.