Chrysler, UAW discuss entry-level wage boost: sources

By Deepa Seetharaman and Bernie Woodall

DETROIT (Reuters) - Chrysler Group LLC and the United Auto Workers union are discussing a plan that would lift the base wages of entry-level workers at the No. 3. U.S. automaker over time, two people involved in the talks said on Thursday.

The development comes as Fiat-controlled Chrysler and the UAW make progress toward a new contract with less than a week before expiration of the current four-year deal on wages and benefits on September 14.

Chrysler CEO Sergio Marchionne could be involved in the contract talks as soon as the weekend, one of the sources said. That would follow a meeting earlier this week between UAW President Bob King and General Motors Co <GM.N> CEO Dan Akerson.

Wage increases for Chrysler's "second-tier" workers is a key issue for the union. UAW President Bob King said last week that winning those increases has been the union's top priority in the current round of contract talks.

The union has fast-tracked talks with GM and Chrysler, while progress has been slower at Ford Motor Co <F.N>, people involved in the talks have said.

Of Detroit's three automakers, Chrysler by far has the highest level of entry-level -- or second-tier -- workers, who start at $14.89 an hour, about half the hourly wage of a veteran production worker.

Chrysler, which is controlled by Italian automaker Fiat SpA <FIA.MI>, has proposed "two to three" models for boosting those wages over time, one of the sources said.

The other source said Chrysler has proposed to increase wages to between $16 and $18 an hour.

(Reporting by Deepa Seetharaman and Bernie Woodall, editing by Bernard Orr)

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Source: http://www.huffingtonpost.com/2011/09/08/chrysler-uaw-discuss-ent_n_954937.html

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