AUSWR
The Association of U S West Retirees
 

 

 

Chrysler Expands Worker Retirement, Separation Plan
By Kerry E, Grace
The Wall Street Journal
Monday, May 18, 2009

Chrysler LLC will expand its retirement and separation program for employees at seven facilities it is set to close before December 2010 as part of its restructuring plan.

Chrysler, which filed for bankruptcy-court protection April 30, has said it will shed dealerships and plants as it seeks to slash costs and return to profitability.

The company will close eight facilities, but employees at its Detroit Axle plant won't get the expanded separation program because they are being transferred to a Marysville, Mich., facility scheduled to open next year.

The retirement and separation program window has been extended until May 26, and job cuts will take place a day later.

As part of the program, workers who have 30 years of pension-credit service, are age 65 or older with at least one year of pension-credit service, are age 60 or older with 10 years of pension-credit service or whose age plus the pension-credit years is greater than 85 will get a $50,000 lump-sum payment plus a $25,000 vehicle voucher.

Employees ages 50 to 62 with 10 years of pension-credit service won't see their retirement benefits reduced by early retirement.  Employees taking a voluntary termination who have at least one year of seniority will get a lump-sum payment and a vehicle voucher, depending on how long they've worked for the company.

Workers at the company's St. Louis North and South plants who aren't eligible for retirement or early retirement but who take pre-retirement leave will be put on a leave of absence at 85% of their base wage until their earliest possible retirement date.

Write to Kerry E. Grace at kerry.grace@dowjones.com

http://online.wsj.com/article/SB124265493936230529.html









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