Chrysler, Ford workers buyouts on the news

Posted on Monday, 25 February 2008 , 12:02:34 byEmil

Filed under chryslerfordemployeeworkerbuyoutFordChrysler

Chrysler, Ford workers buyouts on the news

Earlier this week, the Chrysler employees at the carmaker`s Newark, Delaware assembly factory were offered a buyout and some early retirement packages. Almost 1,600 United Auto Workers members of the union are employed at the factory. Those hourly eligible workers for early retirement will receive $70,000 and whole retiree health care plus pension benefits, while the rest of them are being tempted with $100,000.

And still, not all employees got this offer, including the non-manufacturing workers and the ones at the parts distribution - Mopar centers.

Ford issued a one-week extension for its buyout deadline offer at five closed US factories to allow the UAW workers time for considering their options. So, according to Marty Mulloy, company labor negotiator, two of the 10 plans for buyout include money in the tax-deferred retirement accounts or some annuities.
`We wanted to give the people some time to evaluate the tax-efficient option we agreed with the UAW to offer` said Mulloy.

After two years with deficits in billions, Ford is trying now to return in 2009 to profit, and the buyout offers at those five closed plants in Georgia, Virginia, Missouri, Ohio and New Jersey are one of the firm`s latest moves towards achieving that goal.