AP Sources: Chrysler-UAW talks break down

September 22, 2011 - 7:45 PM

DETROIT (AP) — Two people briefed on the matter say negotiations over a new four-year contract between Chrysler and the United Auto Workers have broken down completely as both sides refuse to budge on key financial issues.

The people say bargaining ended Wednesday in a dispute over the number of workers who are paid an entry-level wage. The people didn't want to be identified because the talks are private.

Chrysler wants no limit on less-expensive entry-level workers. The union wants a cap on the number of those workers, who make half the pay of longtime employees.

Negotiating teams went home after talks resulted in a stalemate. No more negotiations are scheduled. The union says it will focus on reaching a deal with Ford.

Work continues at Chrysler factories under a contract extension.