Chrysler buyouts hitting snags
When Ford and General Motors offered buyouts to their employees over the last two years, they each got more takers than they were looking for. Those companies chose to let most of the applicants have the buyouts and then hired temporary workers to fill the gap. This year, it was Chrysler's turn to shed another 13,000 employees and they're taking a different tack. They offered two different deals based on the employees' age. Older employees near retirement age could get a $70,000 lump sum payment with lifetime health insurance. The second package is for younger employees, who can take a $100,000 lump sum with no health insurance. About 4,560 employees have been approved so far, mostly for the $70,000 package. The problem is the lower-seniority workers. Chrysler doesn't want to be in the position of hiring temporary workers and is taking the applicants on a case by case basis so they don't eliminate too many jobs.
Many of the younger workers who want to leave have already found new jobs elsewhere and are now stuck while they wait for Chrysler to decide if they can get their money. So far, Chrysler isn't giving a target date for when decisions will be made and that's leading to a lot of frustration. Chrysler may want to get this situation sorted quickly before it backfires on them.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
Barney 3:57PM (6/03/2007)
Wow! $70,000 to live on for the rest of your life. I could have retired decades ago. The $100,000 would come in handy and obviously not all are entitled. I wonder how Chrysler decides who can or can't be laid off with the bonus. I'm sure the union will be consulted first.
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Petey 6:46PM (6/03/2007)
With buy-outs, the talented (and actually employable) workers take the cash, take a nice vacation or pay the mortgage off.. then find work elsewhere. What Chrysler is left with are the not so desirable folks who are just hanging on hoping they wont be canned any time soon.
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Barney 11:26PM (6/04/2007)
"With buy-outs, the talented (and actually employable) workers take the cash,.."
It would appear that Chrysler is the one who picks. I can't see them cashing in those who are productive unless it's the union who has first say.
Paul 8:04PM (6/03/2007)
It's a sad state of affairs for many a worker for the big US car companies.
In Australia the job losses haven't started piling up just yet although as Holden (GM) and Ford continue to develop largely irrelevant sedans for a market that is now trending towards smaller import cars (petrol prices rising / better quality / more in tune with what customers want) they are surely going to start feeling the pinch.
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iOrange 8:10PM (6/03/2007)
I'm a Chrysler employee myself, and a former metro Detroit resident; I think this whole buy-out thing is bullshit. I agree that there should be severance packages for employees, and pensions for workers of retirement age.. but seriously $100,000?? Any other job would hand you a pink slip, 2 weeks pay, and carton to clean out your desk (or locker). While I agree that finding another job of equal pay is nearly impossible in metro Detroit at the moment.. All I can see is the millions of dollars that could have been put towards new product development going to pay off someone who isn't dedicated to helping turn the company around after the damage done by Daimler.
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swizzo 12:28PM (6/15/2007)
i work in fenton and the article saying that chrysler doesnt want to hire temporary workers is incorrect. there was 2 groups of 300 each that went for testing within the past couple weeks. whether or not they become union is to be seen
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