Chrysler, UAW End Engine Plant Strike

Chrysler Corp. and the United Auto Workers union agreed on a new contract Wednesday to end an engine plant strike that shut down North American production of some of its most profitable trucks.

The union and company did not release details, pending a ratification vote Friday by the 1,856 UAW workers who went on strike April 9 at the Detroit plant.

But the deal is believed to allow the company to farm out about 250 drive-shaft production jobs to an independent supplier--the key dispute in the 28-day walkout. Chrysler executives insisted they would not relinquish their right to have other companies handle parts work.

Wall Street analysts said Chrysler apparently got what it wanted, but at the price of hundreds of millions of dollars in lost production of some of its most profitable trucks.

“It was a very costly and expensive victory for them to win their point,” said Joseph Phillippi of Lehman Bros. “This was really a matter of principle.”

Chrysler stock fell 25 cents to close at $30.75 on the New York Stock Exchange.

The strike forced Chrysler to shut down or slow production at seven assembly plants in the United States, Canada and Mexico. More than a dozen parts plants in the United States and Canada were also affected.

Chrysler halted U.S. and Canadian production of Dodge Ram and Dakota pickups, Jeep Grand Cherokee sport-utility vehicles, Dodge Viper sports cars and Dodge Ram vans.

At one point, more than 23,000 workers were idled by the strike, including the strikers. As of Wednesday, that number had shrunk to about 18,100 after some workers were called back to replenish inventories at parts factories that supply assembly plants still in operation.

UAW spokesman Bobbie Barbee said the agreement would be explained to the workers at a ratification meeting Friday. He declined to comment further.

Chrysler spokesman Tony Cervone said it was uncertain when the workers would go back to work, assuming the deal is ratified.

The UAW had opposed losing the drive-shaft jobs to Dana, which has a mostly nonunion work force. Chrysler had insisted no jobs would be lost because the drive-shaft workers would get new assignments.

Strikes continued Wednesday at General Motors Corp. assembly plants in Oklahoma City and Pontiac, Mich., where the UAW is contesting staffing levels.