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.