Chrysler offering buyouts to all white-collar employees

Reuters reports that, for the first time since 1991, Chrysler is offering buyouts to every white-collar employee. The company is trying to slash 5,000 workers from its payrolls and is offering packages with up to $75,000 cash and vehicle vouchers worth up to $25,000. Employees who accept the offers are expected to leave by November 30. Company officials hope to achieve most of the cuts through buyouts and early retirements, but say there may be some involuntary separations required to reach the goal.

According to a Chrysler spokesman who confirmed the programs, employees began to receive specific offers last Friday and will continue to receive them through November 7.

Chrysler is offering three packages, depending on employee age and years of service. The first is a retirement program for workers 60 and up with ten years of service. The package includes $50,000 cash and vehicle vouchers valued up to $25,000. The second is an early retirement program available to employees between 51 and 62 with ten years of service. This offer doesn’t include any cash or vehicle voucher but allows the worker to retire with full retirement and health care benefits.

There are two variations on the outright buyout being offered to employees who do not qualify for retirement. Those with less than ten years of service will receive $50,000, vehicle vouchers worth up to $25,000 and six months of healthcare coverage. Workers with more than ten years would receive $75,000 along with the voucher