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Chrysler, UAW agree to extend contract through October 19, automaker says

By the CNN Wire Staff
updated 10:10 PM EDT, Wed September 21, 2011
Chrysler Group and the United Auto Workers have agreed to extend the current national labor contract.
Chrysler Group and the United Auto Workers have agreed to extend the current national labor contract.
STORY HIGHLIGHTS
  • GM, Ford and Chrysler failed to reach a deal on a new contract on deadline earlier this month
  • A brief statement from Chrysler does not elaborate beyond the October 19 extension
  • GM and the UAW reached a tentative agreement late last week

(CNN) -- Chrysler Group and the United Auto Workers have agreed to extend the current national labor contract through October 19, according to a statement released Wednesday night by Chrysler's communications office.

The statement did not elaborate.

The UAW and the nation's major automakers -- General Motors, Ford and Chrysler -- failed to reach a deal on a new contract on deadline earlier this month.

Negotiations continued during contract extensions, and GM and the UAW reached a tentative agreement on a new contract late last week.

The contracts between the UAW and GM, Ford Motor and Chrysler Group had been due to expire at 11:59 p.m. on September 14. The union granted Ford an extension in advance of the deadline, as it concentrated on reaching a deal with GM and Chrysler. The union is expected to seek a slightly better contract agreement from Ford, the only U.S. automaker that didn't need a bailout or bankruptcy protection.

The three automakers all made money on an operating basis for the first half of this year, the first time that has happened since 2004. And while analysts and experts are expecting their costs to rise in any new deal, they are generally hopeful their profitability will continue under the new labor agreements.

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