The Chrysler Group and the UAW have agreed to two special buyout programs that will provide early retirement and separation incentives to union represented employees as the automaker tries to reduce its hourly work force by 11,000 people. Earlier this month Chrysler announced that it is cutting 11,000 hourly jobs and 2,000 salaried jobs to return to profitability by 2008.

The buyout program — officially called an Enhanced Voluntary Termination of Employment Program (VTEP) — provides a lump sum payment of $100,000 for employees with at least one year of credited service.

The early-retirement program — called an Incentive Program for Retirement (IPR) — will offer a lump sum payment of $70,000 pretax and full health care benefits to those with 30 years of service. The program will also be available to workers who meet a combination of age and years-of-service eligibility, either those at least 60 years old and with at least 10 years of service or workers who are at least 55 years old and whose age and credited service add up to at least 85 years.

Eligible employees were notified of their options today.

Chrysler Group statement after the jump.

## Source: Chrysler ##

PRESS RELEASE:

Chrysler Group Statement on Hourly Packages

The Chrysler Group issued the following statement in regards to early retirement and separation programs for bargaining unit (unionized) employees:

Chrysler Group and the UAW today agreed to two special programs that will provide retirement and separation incentives for the Company’s bargaining-unit employees in the United States as part of the Chrysler Group’s Recovery and Transformation Plan.

The negotiated programs include an Incentive Program for Retirement (IPR) with $70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program (VTEP), which provides a lump sum payment of $100,000 for employees with at least one year of credited service.

“These actions enable us to become more competitive going forward,” said Jason Vines, Vice President of Communications for the Chrysler Group. “Chrysler Group and the UAW want to ensure that we have socially responsible separation incentives that will allow us to align our workforce needs with the capacity needs of our manufacturing operations.”

A letter outlining the plans was sent to affected employees Feb. 27.

Posted in: Chrysler, Manufacturing, Business, Financial, Employment
RSS 2.0 Feed | Comments | Permalink |  Email This Post