Chrysler to roll out new buyout plans

Chrysler is offering a new round of buyout and early-retirement packages to 13,800 Michigan employees — most of its local hourly workers — as part of its previously announced plans to cut its workforce.

New parts of the packages include tuition assistance and relocation and mortgage services for workers who want to move away or refinance their homes, the company said in a statement.

“There should be a program introduction Monday,” General Holiefield, UAW vice president for the Chrysler division, told reporters following a celebration of the launch of the 2009 Dodge Ram at the Warren Truck plant.

Al Iacobelli, Chrysler vice president of union relations, confirmed the plans, saying packages will initially be targeted at Chrysler facilities in the Detroit area and could be rolled out to other locations.

The efforts go toward eliminating 28,000 jobs, as previously announced.

“This is all part of the original goal,” said Mary Beth Halprin, a Chrysler spokeswoman.

Iacobelli said there are around 2,000 people system-wide on layoff.

“We have a lot of folks sitting in layoff status today. Based on the volumes, there’s really no — at least in the immediate future — placement opportunity. So the UAW and the company have negotiated a package that we think will allow for some worker retraining,” he said. “We want to get people back to work.”

Iacobelli said the efforts are being driven by a decline in sales volume. The automaker’s sales are down 24% so far this year, and Chrysler has reduced its capacity by 1.1 million vehicles.

Past packages have included lump-sum payments of $70,000 or $100,000 depending upon eligibility. Holiefield said the new packages will be similar to previous offers.

But the voluntary termination package will be a little different — including an option to get two years of certified training at a community college or university, Iacobelli said. A tuition assistance program will provide a total of $10,000 over two years, the company said. Chrysler officials also said they’re going to work with the State of Michigan to help connect workers with new training and job placement.

In July, Chrysler began offering buyout packages to non-union, salaried workers with the goal of getting 1,000 workers to leave by the end of September. Iacobelli wasn’t able to say how many salaried workers had agreed to go but he said he highly doubted there would be a need for layoffs.

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