Chrysler Buyout Details

While looking around the Internet and trying to figure out Plan “B”, I ran across the details of what Chrysler could be offering it’s salaried workers in order to ease them out of the company.  From the Detroit News:

Voluntary severance programs will be available starting in November, and take effect Nov. 30. Involuntary measures would follow, taking place by year’s end.

The basic Separation Incentive Program (SIP) consists of $50,000 in cash and a vehicle voucher valued up to $25,000, as well as 100 percent health-care eligibility credits. The SIP is offered to employees aged 60 or older with 10 or more years of service as of Nov. 30.

A Special Early Retirement (SER) plan is available to white-collar workers aged 51 to 62 (previous plans started at age 53) who have 10 or more years of service, making less than $100,000, as well as to select employees aged 53 to 62 (previous plans started at age 55) with 10 or more years of service who earn more than $100,000. This plan offers full retirement benefits (not reduced for age) and 100 percent health care eligibility credits.

In an unusual step, Chrysler is offering Voluntary Incentive Buyouts (VTIPs) for employees with less than 10 years of service as of Nov. 30. They still can leave with $50,000 in cash, a voucher worth $25,000 towards the purchase of a vehicle, and six months of health-care coverage.

Now mind you, I’m getting this out of the newspaper, not my management!!

What is really bad is that I just turned 48 last Thursday, and have almost 9 years with the company.  Of course, the economy is Michigan is lousy, and this action, combined with GM, is just going to make things worse.  What jobs that I do see posted are approximately 20% less than what base salary I’m making now.  Can’t sell the house & move unless I want to lose a ton of money.  I’ve got choices to make, but none of them are good.

And I know that there are people in worse shape than I am.

I can only hope that my department will be spared the brunt of the layoffs & terminations.

8 thoughts on “Chrysler Buyout Details

  1. Tom … they aren’t laying off everyone, so with 9 years service and a maximum of 26 years service by the time you’re 65, maybe you’re in the queue for retention. Those eligible for SIR and SER may very well clear the way for you.

    Don’t let depression set in … maintain hope.

    Semper Fi

  2. Mustang – It’s more of planning for the worst and hoping for the best. Depression is a whole n’other story (or post).

  3. This mess has hit states like ours the hardest. I am in the same boat with my house. Couldn’t sell it if I wanted to for what I owe on it. Hang in there. I am thinking about you.

  4. z – I hope he is. If so, the beer is on me. You’ll have to go to Calwer Ecks in Stuttgart to collect… (best Pilsner I ever had…)

    Teresa – Do you know about that plant that was being built in Tipton? That was my project, so when it was canceled, a lot of people that I know & worked with got burned & now do not have jobs & are in danger of losing their homes. I still have one, and I know that things could be worse. I thank God for all the blessings I do have. I appreciate the thoughts

  5. I work at the Chrysler Assembly plant in Belvidere IL and we were all given a paper as we left with a buyout offer. It said details would come next week but it was the same as previous offers of the 100K. I am a transplant from Indy and am seriously considering this offer with all the turmoil going on with Chrysler & the economy. I have 14 years of service to Chrysler & just don’t know if I should hold out for a higher offer or if things will get better where I could keep my job. I Would appreciate any thoughts.

  6. Doug – I’m presuming that you are a NBU employee of Chrysler as the Union has not received any details on buyouts. Here’s my thought process on the best advice that I could give:

    If you are in danger of losing your job, line up a job somewhere else and take the offer. I doubt very much if there is going to be a higher offer – Cerberus isn’t a generous entity, and chances are that you would not be called back. Depending on the salaried position, the tendency is to contract as much out as possible. Look at the IT department, for example. I don’t know if the offer means that you would give up your pension or not, and I don’t know how your health-care would be affected. If your job is secure(?), then stick it out.

    Bottom line – you’ve got to do what is best for you and your family. You do need to sit down and crunch the numbers & figure out if you want to take the risk by sticking around.

    Of course, you mileage may vary with this advice…

  7. Thanks Tom for your comment.

    I am an hourly employee and all of us there were given this option. This came as a surprise since we thought Chrysler was giving the buy out offers to the salaried staff. I have been searching the web and have not found any other comments about any other plants being offered buyout packages to their hourly staff. Anyone know?
    Hopefully we will find out more info this week.
    It’s just an awful position to be in right now. Take the money and run? If I stay and wait it out they could end up filing for bankruptcy and then I would get nothing.
    Since I am only 41, I do not qualify for the early retirement package and if I take the money I lose my pension.
    At least that is what the inital notice stated Friday (10/31)

Comments are closed.