Chief hopes for UAW Chrysler deal by mer: source

United Auto workers President Bob King UAW delegates address during a meeting of UAW in Detroit, Michigan, June 17, 2010 in this file photo.

Credit: Reuters/Rebecca Cook

DETROIT | Monday, October 10, 2011 11:23 am EDT

DETROIT (Reuters)-the United Auto workers President Bob King said Chrysler plant Union leaders that he hoped that the European Union and the Chrysler Group LLC can reach an agreement on a new four-year contract Wednesday, a source said Monday.

King and Holiefield General, lead negotiator for UAW negotiations Chrysler, said plant Union leaders that they originally had hoped to have a provisional agreement in place by Monday morning, the source said.

Despite intensive negotiations over the weekend, no agreement was reached and the King told the group that another meeting will be held on Wednesday morning, and that he hopes to present EU leaders with a pact proposed at that time, according to the person who knows the meeting Monday.

As a result of Chrysler's 2009 bankruptcy and saving the Federal Government, the Union cannot strike at Chrysler on contractual clauses. If an impasse is reached, the matter would go to the binding arbitration, a process that could take months.

King did not mention the possibility of arbitration in the meeting Monday, the person said. King as last week said it wants to avoid arbitration.

Chrysler is driving a hard bargain with the Union, those familiar with the talks say, as the automaker n° 3 of the United States is under pressure over General Motors Co. (GM.N) and Ford Motor Co (F-N) to keep costs under control due to its weaker financial position.

Chrysler Chief Executive Sergio Marchionne said Chrysler should not take so expensive a contract as Ford and GM.

"Some of the offerings that we have seen be signed between the Ford and GM (UAW) are probably, given the difficult situation of Chrysler ... too generous," Marchionne said on Friday.

UAW talks with Chrysler began in late July, but last month stalled as Chrysler pushed for a deal more facilitated by its rivals of Detroit.

GM simply ratified the new year with the UAW, the end of last month. Ford and the Union announced that a provisional agreement on 4 October and her man are voting on the ratification this week.

(Reporting by Bernie Woodall, editing by Matthew Lewis)

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