• Jun 8, 2007
Back in late February we reported on Chrysler's early retirement and separation program that the automaker hoped would help it shed 13,000 jobs over the next three years. The company was planning on saying goodbye to about 5,700 hourly (read: union) workers this year, of which around 1,000 would be from Canada. That means Chrysler hoped at least 4,700 of its hourly workers in the U.S. would take the buyout offer that offered a lump sum of up to $100,000 to workers willing to leave.
The Detroit Free Press is reporting that in fact around 6,400 hourly workers in the U.S. have said they're interested in taking the buyout, nearly 40% more than Chrysler planned. While the purchase of Chrysler by Cerberus Capital Management was seen as a good thing for the automaker going forward, the larger than expected response to its buyout offer suggests that many of Chrysler's hourly workers believe the writing's still on the wall. Analysts speculate that rather than stick around and drag down the company, these workers feel their retirement benefits will be more secure if they leave now to help the company and ensure its future.

Not expecting such high demand, Chrysler has also reportedly slowed down the buyout process to a halt. Only now have a number of workers departed who expressed interest in leaving the company when the program was announced in late February. It's like that some of those hoping to leave this year will be denied the buyout offer, which is something Ford was forced to do when too many salaried workers accepted its buyout offer.

[Source: The Detroit Free Press]


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    • 1 Second Ago
  • 5 Comments
      • 7 Years Ago
      G'day from Down Under,

      As a journalist and a Ford driver, I was intrigued by (and added a comment to) your post on the StangNet's Glassback GT500 project.

      And now I have posted a Ford story for you! It's called `A Piece of the Auction' - about how a 36-year-old Ford outsold a Rolls-Royce at auction.

      The story can be seen at http://david-mcmahon.blogspot.com/2007/06/piece-of-auction.html and it is posted on my blog at http://david-mcmahon.blogspot.com/

      Hope you enjoy the record of a landmark sale in Australian automotive history.

      Cheers, mate

      David McMahon
      • 7 Years Ago
      Well, now they'll fire the HR guy who came up with the scheme!

      I work for a large telecom, and that's what happened a few years ago when we had a buyout, and WAY more people took it than was predicted.
      • 7 Years Ago
      "Analysts speculate that rather than stick around and drag down the company, these workers feel their retirement benefits will be more secure if they leave now to help the company and ensure its future. "

      Apparently the "analysts" never heard the saying "rats leave a sinking ship". Could it be possible that they would think these union members are taking the offer out of the goodness of their hearts. Analysts?
        • 7 Years Ago
        I suppose that applies to the ones who took buyouts from Ford and GM too eh Barney? Rigggggggggttttt...
        • 7 Years Ago
        "I suppose that applies to the ones who took buyouts from Ford and GM too eh Barney?"

        I really wouldn't say that these union members are accepting a bonus for the benefit of their perspective employers. But then, I'm not an analyst. I imagine being told that all the factory shut downs were for my benefit wouldn't influence my decision. Yeh right!