Chrysler Group of DaimlerChrysler AG has now decided to offer select hourly employees between $70,000 and $100,000 to leave the struggling U.S. auto maker as part of a recently announced restructuring plan. Chrysler is expected to begin offering the packages to certain employees next month, and continue rolling out offers to various employees over the course of the restructuring plan. The Associated Press has reported that the restructuring plan also include an early retirement program for hourly workers near retirement age and a buyout program for those with at least one year of tenure with the company.
Chrysler, the North American unit of DaimlerChrysler, had announced earlier plans to cut 11,000 blue-collar jobs, including 9,000 jobs in the U.S. represented by the United Auto Workers union. Chrysler Group has stated that it had agreed on terms for buyout offers for its factory workers with its major union, including one-time payments of $100,000 for employees with at least one year of experience.
In fact, the company is badly reeling under its tough phase as it is struggling to cope with the losses inflicted on the company. The company had lost around $1.475 billion last year and the speculations are high that losses will be continued through the current year. The company this month was then forced to announce that it would cut 13,000 jobs in Canada and the U.S., including 11,000 hourly positions and 2,000 salaried, as it downsizing itself to match reduced demand for its products.
According to the terms agreed upon by the company and the union, to be eligible for early retirement, workers should have 30 years with the company or be at least 60 years old with at least 10 years of service. On the other hand, workers of 55 years of age will also be offered early retirement if their age and years of company service total 85 or more. For those workers who are 65 or older would be eligible with at least one year of pension credit.
