Chrysler offers buyouts to all hourly workers

[Bindare_Dundat]

In an attempt to cut costs, struggling automaker offers cash and a voucher good for the purchase of a car to union employees that agree to leave company.

Chrysler LLC is offering buyouts to all of its remaining U.S. hourly workers in its latest effort to cut costs and provide an exit for workers who are increasingly nervous about staying with the troubled automaker.

According to a letter from a United Auto Workers executive to union members, Chrysler is offering up to $50,000 to virtually all of its 27,000 U.S. hourly workers, along with a voucher good for up to $25,000 on the purchase of a vehicle.

[Bindare_Dundat]

Good way to save jobs and get rid of cars.

[Bindare_Dundat]

GM announced similar deal.

[CQ]

I wonder if any time limits. Like if you just started with them 3 months ago, can you scoop up $50k and a car>

[Bindare_Dundat]

Buyouts are being offered to almost all their 91,600 United Auto Workers members to make room for new employees earning half of the $28 hourly wage of their predecessors. The UAW’s “jobs bank,” in which workers were paid when they didn’t have duties, ended at GM yesterday, a week after being halted at Chrysler.

“With everything that has happened over the past 24 hours it’s almost desperation pace,” Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, said yesterday. “When you offer all of your hourly workers a buyout, that’s certainly a sign of a troubled organization.”

 http://www.bloomberg.com/apps/news?pid=20601103&sid=aFeULlN7HnNo&refer=news

[shootfighter1]

At least they got rid of job banks, what an economically stupid union sponsored effort.

[Hereford]

They need to get rid of the union influence or else these new workers will be demanding $28 an hour in no time.

Basically they are giving the old-guard a free car and buyout to take an early retirement.