Chrysler, as with many American companies, is looking for further concessions from labor to make up the difference in profit and cost between American companies and their Japanese counterparts.  According to the Detroit Free Press , there are several issues at play here:

Chrysler, with nearly $18 billion in long-term health care obligations, has shown interest in the retiree health care deal but is also known to be pushing for other issues, too, including health care concessions similar to those that the UAW granted in 2005 to GM and Ford, but not to Chrysler. The lack of the 2005 health care deal complicates efforts to create the retiree health care trust, people familiar with the talks said, because the GM trust builds on the 2005 deal.

Chrysler is also believed to be pushing to sell or close some of its operations related to its Mopar parts operations and its transportation division.

Another aspect of the proposed GM contract that could be difficult for Chrysler to match is the apparent guarantee of -- or at least opportunities for -- new vehicles at 16 UAW-represented assembly plants.

Again, health benefits is an important sticking point.  My understanding is that there's a lot of dispute between the oft-discussed VEBA (Voluntary Employee Beneficiary Association) and Chrysler's contribution to that.  UAW has taken the tough stance of advocating for both its past and present members and that means continuing the retirement benefits for all former employees, much to the chagrine of management.

Let's show some solidarity for our brothers and sisters in UAW and applaud them for their courage.  UAW is definitely one of the more progressive unions and their attempts to work with their employers in lowering health costs through the VEBA is certainly a progressive union stance.  We need to stand with them and help encourage Chrysler and other companies to pay their fair share in health benefits to the union and guarantee that union members can continue receiving their fair share of the profit while Chrysler can lower some of their operating costs.