Chrysler layoffs could complicate Ford-UAW talks

By David Bailey

DETROIT (Reuters) - Chrysler LLC's announcement of up to 10,000 more layoffs could throw a wrench into contract talks between the United Auto Workers and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz), analysts said on Thursday.

After short strikes at General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) and Chrysler and a tough ratification vote at Chrysler, the announcement could make an agreement more complicated at Ford, Fitch Ratings managing director Mark Oline said.

"The rank-and-file would certainly want to have that much more assurance in terms of investment commitments and employment levels," Oline said of Ford workers.

CRT Capital Group analyst Kirk Ludtke said in a note that Chrysler's announcement could make it tougher for Ford to win needed concessions from the UAW.

Jerry Tucker, a former UAW regional director who lobbied against the Chrysler and GM contracts, said Ford workers may feel a sense of betrayal to a point, but that would not necessarily keep them from approving a contract.

"Ford workers should look at this just the same, that they could ratify an agreement one day and see massive cutbacks the next day," Tucker said.

The cost-cutting plan, which came within a week of UAW members narrowly voting to approve a four-year agreement with the privately held car maker left those who opposed the deal disappointed, but unsurprised.

Chrysler managers began to prepare for the restructuring months before talks with the UAW began or the company was bought by private equity firm Cerberus Capital Management CBS.UL.