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
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
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