As reported by the Free Press earlier this summer, 7,600 hourly workers
in the United States and Canada agreed to seek a package to leave the
company as part of Chrysler's plan to return to profitability.
While some who wanted to leave are not able to do so, the results
indicate that no involuntary head-count reductions will be needed among
hourly or salaried Chrysler workers this year.
Chrysler lost $680 million last year and nearly $2 billion in the first
quarter of this year, a sum primarily attributed to the cost of
implementing the turnaround plan.
The February turnaround plan, largely overshadowed by the announcement
that Chrysler could be sold, also included news that an assembly plant
in Delaware would be closed and that the company would invest $3
billion in more fuel-efficient powertrain technology, including a new
family of V6 engines called the Phoenix.
Overall, Chrysler wants to cut 13,000 jobs over three years. It said it
wanted to cut 1,000 salaried jobs and about 5,900 hourly jobs this year.
“By selectively targeting our programs, we were able to achieve our
goals without unnecessary disruption to our operations. Even as we look
forward to the exciting challenges ahead, we all appreciate and honor
the contributions of our coworkers who have moved on,” Chrysler CEO Tom
LaSorda said in an e-mail sent to employees Monday.
LaSorda said 1,100 people had left the company through the buyout and retirement packages offered salaried workers.
“Through the end of June, in the U.S. and Canada, our hourly workforce
has been reduced by 6,000 people through special retirement and
separation programs — more than meeting our goal. Several hundred
others have volunteered, and we are working our way through this
process on a plant-by-plant basis,” LaSorda said.
In May it was announced that private equity firm Cerberus Capital
Management was acquiring 80.1% of Chrysler from DaimlerChrysler AG in a
deal that is expected to be finalized near the end of this month.
“Plans for this change are continuing to move forward, and we will
transition to our new identity over a period of time. So stay tuned,”
LaSorda said.
The packages for U.S. hourly workers include payments for as much as
$100,000 to leave the company and were targeted to specific facilities
where the company wanted to reduce head count.
