Layoffs Spread From Chrysler Strike

The ripple effect from Chrysler Corp.s 12-day-old engine plant strike continued to spread Monday, forcing layoffs at transmission and axle plants in Indiana and a stamping plant in Michigan.

Chrysler said it laid off 2,362 workers at its transmission plant and foundry in Kokomo, Ind., while Dana Corp., a supplier at the centre of the labour dispute, said it was forced to lay off 582 people at its Fort Wayne, Ind., truck axle plant.

The layoffs were prompted by Chryslers shutdown of six truck assembly plants in the United States, Canada and Mexico due to a lack of engines from the strikebound Mound Road engine plant in Detroit.

 

About 1,800 members of United Auto Workers Local 51 struck the plant early on April 10 over the automakers plans to move driveshaft production out of the facility to Dana, a Toledo, Ohio-based supplier that operates many non-union plants. UAW officials say the move would eliminate more than 200 jobs from the plant. So far, the dispute has affected a total of 15 plants and has idled more than 22,000 Chrysler workers, including the 1,800 strikers.

Also on Monday, Chrysler said it idled 450 of 2,300 workers at its Sterling Heights, Mich., metal stamping plant and 138 workers at a components plant in New Castle, Ind. Assembly plants shut down so far include the Jeep Grand Cherokee sport utility vehicle plant in Detroit; the Dodge City truck complex in Warren, Mich., which builds the Dodge Ram and Dakota pickups; Dodge Ram plants in Fenton, Mo., Lago Alberto and Saltillo, Mexico; and a plant that builds large vans in Windsor, Ontario.

Chrysler is not paying wages to those idled in its US and Canadian plants but is continuing to pay idled Mexican workers . because of Mexican labour laws that limit unpaid layoffs. Chrysler spokesman Tony Cervone said the Mexican workers were given mandatory vacation time last week and this week.

Analysts have estimated that production losses are reducing Chryslers profits by up to $20 million a day.

Cervone said no formal meetings were scheduled Monday by negotiators for the company and United Auto Workers Local 51.

Talks remained largely dormant over the weekend, but top officials remain in contact by telephone.

Chrysler said portions of the Kokomo plant that produce transmissions for passenger cars, minivans and Jeep Wrangler and Cherokee models remain in operation. The plant employs a total of about 6,500 hourly workers.