03-02-2007, 01:51 AM
Chrysler Rolls Out Hourly Buyouts, While Ford Workers Punch Out for Good
03-01-2007
AUBURN HILLS, Mich. ââ¬â Chrysler Group is offering some of its unionized employees in the U.S. buyout packages in order to trim costs and bring its workforce in line with declining sales. The United Auto Workers buyout packages were rolled out on Tuesday. At the same time, Wednesday marks the final day of work for many employees at the Ford Motor Company who have agreed to be part of a similar voluntary buyout program.
The Chrysler Group is offering an early retirement program that calls for a lump-sum payment of $70,000 pretax and full health-care benefits for those workers with 30 or more years of service. A separate buyout program at Chrysler offers a lump sum payment of $100,000 pretax with six months of health-care coverage.
"These actions enable us to become more competitive going forward," said Jason Vines, Chrysler spokesman.
Chrysler expects to shed about 4,700 hourly workers in 2007 and aims to cut a total of 9,000 hourly jobs by 2009. Similar offers will be made to Chrysler hourly workers in Canada, where the automaker aims to eliminate about 2,000 jobs by 2009. Salaried workers received buyout offers at Chrysler last week, as the company aims to cut 1,000 of those jobs this year and an equal number in 2008.
Across town, Ford has not said specifically how many of its workers have agreed to the buyouts and will leave on Wednesday. However, company executives have said there has been a high "take rate" on the offers, making Wednesday ââ¬â the last day of work for many Ford employees ââ¬â a historic and sad day in the Motor City.
What this means to you: More tangible ââ¬â and permanent ââ¬â signs of the incredible shrinking domestic auto industry.
03-01-2007
AUBURN HILLS, Mich. ââ¬â Chrysler Group is offering some of its unionized employees in the U.S. buyout packages in order to trim costs and bring its workforce in line with declining sales. The United Auto Workers buyout packages were rolled out on Tuesday. At the same time, Wednesday marks the final day of work for many employees at the Ford Motor Company who have agreed to be part of a similar voluntary buyout program.
The Chrysler Group is offering an early retirement program that calls for a lump-sum payment of $70,000 pretax and full health-care benefits for those workers with 30 or more years of service. A separate buyout program at Chrysler offers a lump sum payment of $100,000 pretax with six months of health-care coverage.
"These actions enable us to become more competitive going forward," said Jason Vines, Chrysler spokesman.
Chrysler expects to shed about 4,700 hourly workers in 2007 and aims to cut a total of 9,000 hourly jobs by 2009. Similar offers will be made to Chrysler hourly workers in Canada, where the automaker aims to eliminate about 2,000 jobs by 2009. Salaried workers received buyout offers at Chrysler last week, as the company aims to cut 1,000 of those jobs this year and an equal number in 2008.
Across town, Ford has not said specifically how many of its workers have agreed to the buyouts and will leave on Wednesday. However, company executives have said there has been a high "take rate" on the offers, making Wednesday ââ¬â the last day of work for many Ford employees ââ¬â a historic and sad day in the Motor City.
What this means to you: More tangible ââ¬â and permanent ââ¬â signs of the incredible shrinking domestic auto industry.