Chrysler retirees and dealers hire lawyers

Retired salaried Chrysler employees and franchised dealers are hiring attorneys to protect their interests.

The retirees, who have banded together as the National Chrysler Retirement Organizaion (NCRO) have hired Stahl Cowen Crowley Addis of Chicago to help in their struggle to keep their health benefits. More than 19,000 former employees, along with their spouses and dependents, are at risk of losing the benefits they were promised because those obligations would not be transferred to the “new” Chrysler but left with the “bad” assets to be disposed of by the court..

Chuck Austin, president of the NCRO, met with the auto task force but was told Chrysler has only a moral obligation to continue benefits for salaried employees while it has a legal obligation to fund them for union members. Austin, who retired after 40 years with Chrysler, noted the company had made severe cuts to salaried retirees’ health benefits two years ago.

Chrysler, Dodge and Jeep dealers who are considered likely to retain their franchises have decided to employ Arnold & Porter LLP of Washington, DC. Dealers who believe they are likely to be cut have brought in Squire Sanders & Dempsey of Cleveland. Tomorrow, Chrysler will post of list of about 800 dealers it intends to terminate. Chrysler currently has about 3,200 dealers.

Both groups are hoping Judge Arthur Gonzalez will grant them status to work with the committees overseeing the disposition of Chrysler assets.