Chrysler offers new round of buyouts to UAW

Chrysler offers new round of buyouts to UAW
http://www.autonews.com/article/20090202/ANA02/902020284/1128

Automotive News
February 2, 2009 - 12:06 pm ET

DETROIT -- Chrysler LLC has launched a new companywide round of hourly
worker buyouts and retirement incentives to cope with the industry
downturn and meet federal labor-saving requirements for the automaker's
rescue package.

Chrysler notified UAW locals of the plan today, said a union source who
asked not to be identified. Automotive News obtained a copy of the notice.

Chrysler wants to move veteran workers off its rolls to eventually bring
on hires who will earn half the $28-an-hour wage of current veteran
workers and half their benefits. The carmaker employs about 38,000
workers represented by the UAW.

Chrysler also must bring its labor costs in line with Japanese
transplant automakers by Feb. 17. That's when the company is required to
justify a federal rescue loan of $4 billion. General Motors has the same
timeline to justify a federal loan commitment of $13.4 billion.

Chrysler spokeswoman Shawn Morgan declined to comment.

The buyout incentives are similar to those offered last year but with a
couple of new wrinkles, the union source said.

Retirement-eligible workers who leave will receive a $50,000 incentive
plus a voucher of $25,000 for a new Chrysler vehicle, according to the
notice. Last year the incentive was $70,000.

Workers who take a buyout and leave with no retiree health care benefits
get $75,000 and a $25,000 car voucher, the union source said. The
incentive was $100,000 last year.

Another group now is eligible for full retirement benefits: workers age
55 or older with 10 years of service, according to the notice.