Chrysler makes more offers to shed workers

As of February 2, 2009, Chrysler is announcing another incentive program for retirement and special early retirement program, according to a missive forwarded to Allpar. The programs (IPR and SER for short) are based on “unprecedented conditions” and were approved by the UAW.

The incentive program includes a lump-sum payment equal to a pre-tax $50,000, and a vehicle voucher for $25,000 (pre-tax value is around $40,000). Employees taking this plan get regular pension benefits, subject to early-retirement age reductions. This only applies to people at least 60 years old, with ten or more years of pension-credited service; between 55 and 60, with combined age and pension-credited service of 85 or more; or at least 65 with one year of pension-credit service; or at have at least 30 years of pension-credited service.

The SER program eliminates the lump sum and vehicle voucher, instead providing regular pension benefits despite the employees’ early retirement age. It is available to those between 55 and 62, with ten or more years of pension-credited service.

Both programs are available to active, hourly UAW workers (skilled or non-skilled), including those on disability leave and  those on layoff. Employees must be “designated by management” and must not have left before receiving an offer letter, and must stay until the retirement effective date. 

The programs will start February 2 and end on February 25, 2009. Effective dates of retirement begin February 28, with possible individual extensions up to June 30.  Employees can only take one of the offers and management must approve of the deal with each individual employee. Those interested were advised to pick up the relevant package at the HR office.