Job losses at DaimlerChrysler’s suburban St. Louis operation will be worse than previously reported, according to a published report.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The automaker said it would eliminate more than 1,900 jobs at its two plants in Fenton, Missouri – which is 600 greater than previously reported, the Associated Press (AP) said.
Spokeswoman Michelle Tinson told the news agency the additional 600 job cuts had been privately disclosed to unionised workers, but were not publicly reported in February when the company first announced cutbacks near St. Louis.
DaimlerChrysler is trying to improve efficiency at its plants and the most recent reductions are not related to 1,300 job cuts announced last month, Tinson told the Associated Press.
Glen Woemmel, president of the local United Auto Workers branch, said he had not been notified of any new job cuts in Fenton.
The Associated Press noted that, in February, DaimlerChrysler announced plans to eliminate 1,300 jobs at the South Assembly plant, where minivans are made. But at the time, the company didn’t announce the additional cuts, including some at the North Assembly plant, where Dodge Ram pickups are manufactured.
Tinson reportedly said DaimlerChrysler plans to offer hourly workers a $US70,000 retirement incentive for those with at least 30 years of seniority.
The company will also offer $100,000 for workers with more than one year of seniority who accept voluntary termination, Tinson told AP. Retirees would keep health and other benefits consistent with their union contracts; other workers would get six months of medical benefits.
