Chrysler deal bars strikes for 6 years

SOUTHFIELD, MICHIGAN: Chrysler LLC, seeking to sell most of its assets out of bankruptcy to a new company run by Fiat SpA, won���t have to contend with a strike by the United Auto Workers until at least 2015.

The union���s contract with Auburn Hills, Michigan-based Chrysler, ratified April 29, will be extended past its September 14, 2011, expiration until that date in 2015, with any changes handled by binding arbitration, according to court documents.

Labor stability in its US operations would help the new company compete in a shrinking auto market. The UAW contract also trims costs by reducing health-care benefits, consolidating job classifications and tightening attendance rules. By removing the strike threat, the arbitration clause gives the union less leverage should it try to recoup what it gave up.

���This sets a precedent that says, ���In the most troubled of times, we will forgo the right to strike to ensure the survival of the company,������ said Harley Shaiken, a labor affairs professor at the University of California at Berkeley. ���It recognizes the reality that in two years, Chrysler will likely still be in rough waters.���