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Deal with DaimlerChrysler
UAW wins incentives in turnaround plan
A voluntary incentive program reached by the UAW and DaimlerChrysler
Corp. could help some hourly workers who are eligible for retirement and
younger employees who might be facing layoffs.
The program--part of the company’s turnaround plan--may
appeal to workers already considering retirement or those looking for
other career opportunities.
The pre-tax total value of the incentive to each eligible
worker will be $35,000, half in the form of a voucher to be used toward
the purchase of a new Chrysler, Dodge or Jeep vehicle, and the other half
a one-time cash payment of $17,500.
“Together with the solid retirement benefits we have
negotiated over the years, these incentives substantially improve the
options available to our retirement-eligible members at DaimlerChrysler,”
said UAW Vice President Nate Gooden, who directs the union’s DaimlerChrysler
Department. “They fit the UAW’s longstanding goal of creating
solid and secure retirements while also keeping good jobs for lower-seniority
workers.”
The Chrysler Group plans to eliminate 26,000 hourly and
salaried jobs in North and South America over the next two years.
Gooden estimated that as many as 3,000 eligible UAW members
could wind up accepting this incentive offer in the next several weeks.
To qualify, hourly workers must meet one of three criteria:
• Be at least age 60 with at least 10 years of pension-credited
service.
• Have at least 30 or more years of pension-credited service.
• Or be at least age 55 but younger than 60, with the combined
age and pension-credited service totaling at least 85 points.
Eligible workers will be notified over the next few weeks
and months as planned production cuts take place. The acceptance period
for this incentive program for retirees will vary depending on the timing
of the actions at each of the affected locations.
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