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This afternoon the Chrysler Group and the UAW released a statement revealing details of the early retirement and separation programs that will help the automaker reach its goal of shedding 13,000 jobs. Two-thousand jobs being eliminated are salaried positions, and we brought you details on those early retirement and buyout packages last week. Today's announcement affects the 11,000 hourly workers who the Chrysler Group hopes will choose to leave the company on a voluntary basis.

There are two plans available to hourly workers, which include an Incentive Program for Retirement (IPR) and an Enhanced Voluntary Termination of Employment Program (VTEP). The IPR allows hourly workers with 30 or more years of service with the company to accept early retirement in exchance for a lump sum of $70,000. It is presumed these retirees would keep all the benefits that are granted to a normal retiree. The VTEP, however, is available to any hourly employee with at least one year of credited service with the company. In exchance for leaving the company, the Chrysler Group is offering a lump sum payment of $100,000.

Any employees eligible for these programs were notified of their options via a letter today .

[Source: the Chrysler Group]


Chrysler Group Statement on Hourly Packages

The Chrysler Group issued the following statement in regards to early retirement and separation programs for bargaining unit (unionized) employees:

Chrysler Group and the UAW today agreed to two special programs that will provide retirement and separation incentives for the Company's bargaining-unit employees in the United States as part of the Chrysler Group's Recovery and Transformation Plan.

The negotiated programs include an Incentive Program for Retirement (IPR) with $70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program (VTEP), which provides a lump sum payment of $100,000 for employees with at least one year of credited service.

"These actions enable us to become more competitive going forward," said Jason Vines, Vice President of Communications for the Chrysler Group. "Chrysler Group and the UAW want to ensure that we have socially responsible separation incentives that will allow us to align our workforce needs with the capacity needs of our manufacturing operations."

A letter outlining the plans was sent to affected employees Feb. 27.

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    • 1 Second Ago
      • 8 Years Ago
      $100000.00 would be a nice down payment on a home in Mississippi next to the Toyota plant site! Get your resume ready UAW employees.
      • 8 Years Ago
      Not bad for just 1 year of service, what happens if you don't take the buyout? Get canned with no benefits? Yeah! The 100k is nice but you still have to find another job, Just not for the next few years.
      • 8 Years Ago
      THIS is total BS!

      Some stupid ass kid gets a job in a factory pushing buttons because he fucked up his future. Hell a 100K severance, what a life lesson this is. Join a union, use outdated worker's rights policies, leverage the law for ill gotten personal gain.

      This makes honest blue collar work look silly.

      I'm glad I had to rack up 100k in student loans to land a great career. If I get fired....its 90 days salary.
      • 8 Years Ago
      Keep in mind this money replaces the pension and healthcare they thought they would get when they retired.

      If these people don't reinvest the money, they will be screwed when they retire. If they have to live off the money while they find another job, they will also be screwed. $100,000 would totally be tempting, but may not go as far as some realize.

      Depending on the age of the retiree, the pension and health care could be worth multiple $100,000 buyouts.
      • 8 Years Ago
      David, unions didn't build this country. This country was built by hard working individuals who had the freedom to contract for their own employment, and the freedom to hire and fire employees at will.

      Luckily that's what most of the country is again as union labor is down to less than 10% of US workers. So don't tell me that it's unions that keep the rest of us employed and well-paid.
      • 8 Years Ago
      sorry tina, but your argument just does'nt fly. my wife works for the largest grocery chain in chicago (name withheld but it sounds like a precious stone) and plans to retire in the next few years. after twenty five years, she has a great pension and the health care kept us going as i was starting my business. great pay, good bennies, great pension, gee, what was she thinking. wal-mart built a new store in minnesota and because they treat their employees like crap, they tried to unionize. wal-mart's answer; close the store. huge fight here in chicago a year or two ago when wal-mart wanted to build two new superstores. the city wanted them to pay a living wage of ten bucks an hour and holy crap did wal-mart fight it. that's right, ten bucks an hour. tell me who could raise a family on ten bucks an hour and no health care.
      and dave, perhaps you need to go back to school and learn about american industry at the turn of the century. it may enlighten you as to the role unions played in building america. but, as the younger generations emerge into the work force, the attitude has changed. "i want what i want and i want it right now. you old union farts paved the way, now get out of my way." even they reap the reward of american unions.
      don't get me wrong. if the day ever came that all workers were treated well and given the part of the american dream that they work for, then the unions would have served their purpose and disolve. do i think that day will ever come? no.
      hypothetical question. when non-union toyota falls on hard times, which they will, will they be as generous?
      • 8 Years Ago
      "unions made this country"
      WTF? I thought slaves made this country, or maybe it was Hispanic migrant labor, no wait, it was poor Irish immigrants... Alright damn it! I want to know, who the hell made this country!?
      • 8 Years Ago
      15# Posted at 9:53PM on Feb 27th 2007 by david
      Irony at it's best.. David lol For your pleasure here is my rebuttal. 1# I work for one of the Big three soon to be the Big two.lol .. so i have abit of insider knowlege to back up my comments. Did you know that one of the main reasons that percieved quailty until of recent turnarounds, has been "dumbafied" or i should say "simplified"? It is so that simpleminded money grubbing knuckle dragging Union Auto Workers can actually fit the square peg into the square whole. Sounds simple doesn't it??
      #2 Whether you know it or not. A big reason that Import companies like Toyota DO NOT want to open any kind of assembly plants anywhere near Michigan is because of the Auto Unions. They don't want to deal with the bureaucracy of the matter or have the privilege of paying off legacies for years to come.Who can blame them?

      I'll give you one little example of how some things usually run at My Work Place. Just a bit of an insiders point of view of a Auto Union workers working day. 6am on the dot. Cars are filled in the parking lot with large majority of Union workes... Any work actually getting done?? maybe some .. after breakfast.. The regular work days happens...several breaks in between blah, blah, blah .. but wait!.. its 2:15pm Oh shit! I have to run to the punch out clock and wait in line until 3:pm to clock out and make sure that I get payed for my FULL 8 hours of hard work!... this just makes me sick! Isn't that stealing? mean while there is so much to do but wait it will have to wait till tomorrow.

      Don't get me wrong. I have nothing against Hard working people.. I just think that I you love your Job then don't complain about it. If you love what you do then It shows.. There are many hard working people that do love there jobs, but sadly that is counter sunk by the many that don't.
      And by the way I LOVE MY JOB and I KNOW i'll get far.!!!
      • 8 Years Ago
      They never tell the employees that the government considers this "other" cash and tax the crap out of it.

      • 8 Years Ago
      This story makes me think of LAtrell Spreewell and him turning down whatever zillions of dollars to play in the NBA a few years back. "I got a family to feed" he said. Dudes making $35K a year getting handed a check for $100K in one day will piss that money away and be whining about it in 2 years.

      • 8 Years Ago
      I belong to a union as well but not in the auto industry. I recall being a new hire and one of my first "duties" was to watch for the floor supervisors while the "workers" with senority goofed off. I would estimate that these guys are totally unproductive for 4-6 hours of their shift...day in and day out. If the employee does get caught screwing off, invariably the union files a grievance on their behalf and gets away with a slap on the wrist and no record of the offense. I just bite my tongue because I would rather not have my car keyed in the parking lot...or worse. It's a damned shame because we make a fantastic wage for our skill level.
      If the auto unions are anything like my place of employment I can see why the Big 3 are in trouble.
      • 8 Years Ago
      $70,000 bonus...For employees on the assembly line for over thirty years! A lot of money for a person who became a robot. Many will get pensions as well.
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