Chrysler doesn’t plan to announce the number of workers taking its latest buyout offers for several more weeks despite the passing of a deadline for thousands of Detroit-area workers to make a decision, a company spokeswoman has said.
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According to the Associated Press (AP), as of Monday, hourly workers at 11 of Chrysler’s US facilities had been scheduled to decide on the offers, which include a $US70,000 incentive payment to retirement-eligible workers or $100,000 to workers who agree to leave without future pension or health benefits.
AP said four assembly sites – Toledo North in Toledo, Ohio; St. Louis North and South in Fenton, Missouri; Belvidere, Illinois; and Jefferson North in Detroit – had a January deadline to make decisions, while seven additional plants in Michigan had a Monday deadline.
Separately, WardsAuto.com reported earlier this week that production resumed on Sunday at Belvidere after a parts shortage shut down the three-shift operation for three days.
Production resumed with the third shift at 11pm on Sunday night and had delayed a planned move to reduce Belvidere to two shifts. Citing a website operated by the local United Auto Workers branch, Ward’s said the third shift would now be operated until 7 March. It had previously been scheduled for elimination next Monday (25 February) as part of a restructuring initiative announced in November.
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By GlobalDataBelvidere builds 1,000 daily units of the Dodge Caliber and Jeep Compass and Patriot SUVs, according to Ward’s.
Chrysler spokeswoman Michelle Tinson, meanwhile, told the Associated Press last night that workers at other plants are still considering the buyouts. Staff at five plants in Indiana and Wisconsin have until next Monday to make a decision, while workers at an assembly plant in Newark, Delaware, which is scheduled to close next year, have until 10 March 10. Buyout deals are still being negotiated for Chrysler’s Mopar parts unit, Tinson added.
AP noted that the latest cuts came in addition to 13,000 layoffs Chrysler announced in February last year, including 11,000 hourly and 2,000 salaried workers. It said 6,400 hourly workers had left the company under than program as of June, but additional retirement packages could still be rolled out under that programme, which was scheduled to run to the end of 2009.
Last week, AP reported that Ford was currently offering 10 different packages to a total of 54,000 workers in a better deal than 2006, when non-skilled workers were offered only a $35,000 lump sum to go.
Cross-Detroit rival General Motors last week said it would offer similar deals as Ford to all 74,000 of its own UAW-represented employees.
GM offers all 74,000 UAW workers buyouts
