Chrysler strike deadline imminent

Chrysler wants to reduce its costs

Workers at US car firm Chrysler may go on strike if there is no breakthrough in crucial wage talks.

Unions have set a deadline of 1100 local time (1500 GMT) for agreement over planned changes to pay, health care, and other employment benefits.

Unions are concerned that Cerberus, Chrysler's private equity owner, wants to roll back existing pay deals but the firm says it must stay competitive.

The crunch moment follows recent strike action by workers at GM over pay.

Security in retirement

GM staff walked off the job for two days last month, a strike ended by GM's decision to pay $29.9bn (£14.6bn) into a fund to cover the cost of health care for its retired workers.

Officials said the Chrysler talks were on a knife-edge and strike action was possible.

The UAW member who is nearing retirement wants to know if he is going to be secure for the next 20 years Harley Shaiken, University of California

In a memo to workers, United Auto Workers (UAW) president Ron Gettelfinger said Chrysler "had so far failed to make an offer that adequately addresses the needs of our membership".

However, negotiations could be still extended even if no agreement is reached.

Central to the talks is the future management of employee health care benefits and whether a pay increase of $1 an hour introduced last September will be maintained.

"The UAW member who is nearing retirement wants to know if he is going to be secure for the next 20 years," said Harley Shaiken, a labour expert from the University of California.

Cerberus bought a majority stake in Chrysler for $10bn earlier this year and subsequently unveiled a management shake-up at the firm.

The UAW represents 49,000 workers at Chrysler's 24 manufacturing plants.

Critical contract talks are taking place at Chrysler, GM and Ford as the US three largest car companies seek to reduce their cost base in an effort to compete more effectively with more efficient rivals such as Toyota and Honda.