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Chrysler and union seek deal without arbitration

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AUBURN HILLS, Michigan (Reuters) - Chrysler Group LLC and the United Auto Workers union expect to reach a deal on a new labor contract without resorting to arbitration, officials for the company and union said on Monday.

"If arbitration happens, if anything like that happens, then I'd say we haven't done our job," said Bob King, president of the UAW, which represents about 112,000 U.S. production auto workers, of which about 20,000 are at Chrysler.

The two sides launched contract talks at Chrysler's headquarters in Auburn Hills, entering the lower-level amphitheater wearing matching maroon jackets.

King and General Holiefield, the UAW's vice president for Chrysler, spoke for the union. Scott Garberding, head of manufacturing, and Al Iacobelli, head of employee relations, represented the company.

Chrysler emerged from a federally funded bankruptcy a little more than two years ago. It is now controlled by Italian automaker Fiat SpA.

The current labor contract expires on September 14. General Motors and Ford Motor Co are also expected to launch talks this week.

(Reporting by Bernie Woodall and Deepa Seetharaman and Matthew Lewis)