REPORT: Chrysler again offering early retirement to 23k hourly workers
The Detroit Free Press is reporting that Chrysler is again offering early retirement packages in an effort to entice some of its 23,000 hourly employees to hit the road. The buyout packages are the first offered by post-bankruptcy Chrysler, though the terms of the buyouts are very similar to earlier offerings. The Freep is reporting that all workers with at least one year of service can walk away from their current job and receive $75,000 plus a $25,000 voucher. Those who wish to participate in this program will also continue to receive health benefits for an additional six months with the option to purchase coverage for a year after that.
Retirement-eligible workers age 55-59 with a combined 85 years of service or workers age 60 or older with at least 10 years of service can receive $50,000 plus a $25,000 voucher. A third package for workers between the ages of 55 and 62 with at least 10 years of service can receive immediate full retirement benefits. The workers have two weeks to decide whether or not to take the buyout/retirement packages, as the offer will be pulled from the table November 13.
Chrysler's newest buyout program comes as many facilities across the country are either closing or have already closed. Without a jobs bank to keep paychecks coming, we're guessing the take rate could be substantial in affected areas.
[Source: Detroit Free Press | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 2)
djdnz 9:24AM (11/04/2009)
$75,000 + $25,000 to walk away from an assembly plant job after only a year of working there? Man, I'm in the wrong business.
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9600baud 9:33AM (11/04/2009)
Am I missing something here or is this a "take it and run like you stole it" kinda deal? I mean what the hell?
Jei 4:30PM (11/04/2009)
Agreed. I'm thinking for those newer employees, with at least a year, can take the $75k + $25k if they refuse all health benefits and completely cut their ties with Chrysler. I don't know what the "voucher" means though. Is that like an IOU? Or is it a $25k voucher to only be used to pay for educational services like college courses or trades training.?
crawford.kirk 9:27AM (11/04/2009)
Now they'll have to train there replacements.
There goes experience.
W. Kirk Crawford
Tularosa, New Mexico
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Carguy 9:40AM (11/04/2009)
Ya, their offshore replacements that they don't have to pay healthcare and future legacy costs to. It will still be cheaper. Chrysler management is arrogant, not stupid...
leftlaneabuse 9:37AM (11/04/2009)
Now they can drink all day long instead of just at lunch break.
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nrb 9:42AM (11/04/2009)
Forgive my ignorance, but a voucher for what?
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John 9:44AM (11/04/2009)
It's actually a voucher towards the purchase of a new vehicle as I recall. So $25,000 towards a new Chrysler.
nrb 10:21AM (11/04/2009)
Thanks. That does sound a little familiar.
I suppose if they're bitter toward Fiat/Chrysler, they could sell it on the street for $20K.
John H. 12:11PM (11/04/2009)
I'm guessing Chrysler isn't expecting many of those vouchers to be redeemed...
If you actually know how badly the car is made, why would you get one?
JZeke 9:45AM (11/04/2009)
Howabout offering some healthy food and a gym membership instead? I'm just going off this photo...
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JDM Life 9:57AM (11/04/2009)
USA USA USA
audi_arena 9:46AM (11/04/2009)
Am I missing something or does it make no sense that this article claims that every employee who has been there for at least 1 year that retires early gets $100k, but those who are closer to retirement and have been with the company longer only get $75k?
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nrb 10:24AM (11/04/2009)
Sounds backward, doesn't it? I suspect they feel the near-retirees have less to lose. They should be better prepared.
It's Italian logic.
Kumar 11:05AM (11/04/2009)
It looks like the ones closer to retirement get benefits, where the 1 year people get 6 months of health insurance, then nothing. See below for the difference between the others. One is early retirement with full benefits and no buyout, the other is a buyout and earned benefits to date. I still don't get the 85 year bit though.
"$50,000 and the $25,000 vehicle voucher, as well as their earned pension benefits."
"For workers between 55 and 62, and at least 10 years with Chrysler, there is a special early retirement program that provides full pension benefits, based on years of service, but no lump-sum payment or vehicle voucher."
- from the freep article.
audi_arena 11:55AM (11/04/2009)
Great article, AB.... :eyeroll:
Rick C. 9:50AM (11/04/2009)
Retirement-eligible workers age 55-59 with a combined 85 years of service...
What??? How old are these guys?
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Luis 9:52AM (11/04/2009)
Considering how well-made the cars are it's not surprised dead people are making them!
leftlaneabuse 9:54AM (11/04/2009)
40 years working the line feels like 85.
Ross 10:06AM (11/04/2009)
>> Retirement-eligible workers age 55-59 with a combined 85 years of service
It's badly worded. I believe it means workers whose age + years of service = 85 or more. Example: age 57, worked for Chrysler for 28 years = 85.