Article Image
Alternative Dispute Resolution Arbitration for Chrysler?

Tuesday, October, 4, 2011

Alternative dispute resolution arbitration may soon be in the works for Chrysler and the United Auto Workers.  Chrysler CEO Sergio Marchionne is seeking concessions from workers in an effort to create a contract that will save him enough money to compete with rival carmakers whose labor costs are far lower.  The end result of his applying pressure to the union, however, may be to force the talks into contract arbitration.


Marchionne Seeking Concessions via Alternative Dispute Resolution Arbitration


One of Marchionne's goals is to write into the contract the ability for Chrysler to hire any number of entry-level workers desired.  Currently there is a cap on such workers.  According to Kristin Dziczek, who works as a labor analyst at the Center for Automotive Research based in Ann Arbor, Michigan, “He has taken a harder line and Chrysler is in a different situation because their balance sheet isn’t as beautiful and the profits haven’t started to fall in”.


Marchionne won similar concessions at Fiat, but he may find it more difficult to repeat his success at Chrysler because the current contract guarantees workers access to binding arbitration to resolve contract disputes.  Marchionne himself has claimed a reluctance to have the matter decided by arbitration attorneys.  “I sincerely hope that we don’t have to get to arbitration,” he remarked.  “But if necessary, Chrysler will go there.”