Taxpayer cash will fund some UAW buyouts

Chrysler will be using government-provided funds to offer improved buyout packages to certain union workers. The affected employees work at the six Chrysler plants slated for closure unless they can be sold.

The money will come from the “debtor-in-possession” financing Chrysler is receiving from the U.S. Treasury. The factories are part of the assets that will not be picked up by the new company is scheduled to emerge from Chapter 11 reorganization this summer.

Chrysler had already set aside cash to pay for buyouts that had been offered to union members prior to the bankruptcy filing.