Chrysler is hustling to streamline its business operations before the March 31 deadline outlined in the rescue package from the federal government. One of the cost-cutting moves is to bring back the buyout program in an attempt to reduce the cost of labor in assembly plants.
Chrysler is hoping to reduce the number of UAW workers earning $28 per hour and replace them with new hires earning $14 per hour as well as reducing the cost of benefits for these workers. There are currently 38,000 UAW workers employed by Chrysler.
According to a memo leaked to Automotive News, Chrysler is offering $50,000 in cash and a $25,000 voucher for a Chrysler vehicle to workers eligible for retirement. If a worker declines any retiree health care benefits, the number swells to $75,000 and the $25,000 voucher for a new Chrysler vehicle still applies. Interestingly enough, Chrysler is now offering full retirement benefits to all workers 55 or older who have worked at Chrysler for at least 10 years.
Source: Automotive News