Car sales in the US are down, which is bad news for everybody in the industry, but Chrysler is among the automakers struggling most. To adjust factory production to lower demand, the Pentastar was preparing to lay off up to 5,000 workers when it cut shifts at several plants. Instead, to keep good will with the UAW while also slimming down the blue-collar payroll, the Auburn Hills, MI-based automaker is offering buyouts to union members from Jefferson North, Belvidere Assembly Plant in Illinois, Toledo North Assembly, Sterling Heights Assembly, and Brampton Assembly in Ontario.
According to the Detroit News, UAW workers with at least 30 years on the job will get $70,000, plus full retirement benefits, and those with at least one year of service can opt to receive a $100,000 lump sum buyout option with six months of health care. Chrysler is hoping the packages will delete all 5,000 jobs through attrition alone, which will save the automaker from paying laid-off workers 90-percent of their wage for 48 weeks. The packages are part of Chrysler's plan to shed 8,500 to 10,000 blue collar jobs as part of the company's latest restructuring.
[Source: Detroit News]
According to the Detroit News, UAW workers with at least 30 years on the job will get $70,000, plus full retirement benefits, and those with at least one year of service can opt to receive a $100,000 lump sum buyout option with six months of health care. Chrysler is hoping the packages will delete all 5,000 jobs through attrition alone, which will save the automaker from paying laid-off workers 90-percent of their wage for 48 weeks. The packages are part of Chrysler's plan to shed 8,500 to 10,000 blue collar jobs as part of the company's latest restructuring.
[Source: Detroit News]
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