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Chrysler salaried workers to be paid during break

by Bill Cawthon on

Chrysler Group LLC’s salaried workers get to breathe a sigh of relief: they won’t be forced to take a two-week unpaid furlough this summer. According to spokeswoman Shawn Morgan, they will still have a two-week break but it will be a paid vacation instead of a nearly four percent pay cut.

When Chrysler LLC was in bankruptcy, Capstone Advisory Group (which was being paid millions) proposed the furlough as a cost-saving measure, because it was seriously short of cash after paying its suppliers. but company spokesman David Elshoff said the company’s bankruptcy expenses were lower than anticipated, so the new Chrysler Group had adequate resources to cover the payroll.

“The company found savings in the process that rendered the furloughs unnecessary. It’s another reason why it’s good news to have bankruptcy in our rearview mirror.”

Unpaid vacations are becoming increasingly popular as employers try to trim costs while avoiding or minimizing layoffs.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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