After just a few weeks ago the UAW striking against GM and then settling within a couple days, it is now the UAW at Chrysler LLC which is striking. Workers at Chrysler plants in Michigan began walking off the job just minutes ago at 11 am eastern.
Chrysler is actually in a very good place to weather a short strike. The company 
has a huge glut of inventory on hand, so a short strike might even help remedy a problem. A longer strike would certainly hurt the cash position of the company.
The UAW workers appear to have more to lose in this situation. UAW workers are going to be earning just $200 a week when off the job on strike, a far cry from their normal salaries when on the job at Chrysler.
Cerberus Capital, a major private-equity manager, recently took an 80% stake in Chrysler, buying that stake from Daimler AG (NYSE:DAI). Many analysts believe that Cerberus is planning on trying to turn the Chrysler operations around and get the company back to profitable, then sell the company.
The UAW in this case is looking for production guarantees from the company so that it can preserve union jobs. Chrysler is certainly looking to improve their cost picture, as GM did just a few weeks ago.
It is highly unlikely that this strike will last very long, as neither side would stand to benefit from a long holdout.
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