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]