Chrysler to Expand Separation Programs

The closure of six of Chrysler's plants (apart for the two who have already been closed) has raised concerns about the future of the company's employees. As a result of the talks with the UAW, the American manufacturer will continue to provide the existing 2009 retirement and separation program offerings for the affected workers, apart for the ones of Detroit Axle, due to the fact that they will be relocated to the Marysville facility, scheduled to open in 2010.

As agreed earlier this year, Chrysler has several separation and retirement packages for the workers. As Chrysler says "employees at all manufacturing facilities are eligible for at least one program offering", a nice way of saying all of them are expendable. The current program was extended until May 26, with the separations to take place the following day.

"All special program checks and vouchers previously issued but not cashed and future special program checks and vouchers to be issued will be honored. Funds have been reserved to ensure that future special program separation payment obligations will be met. We will work closely with the United Auto Workers union to manage these changes in a socially responsible manner," Chrysler said in a release.

As we previously told you, Chrysler will close the following facilities: Sterling Heights assembly plant, Detroit Axle, Twinsburg Stamping, Conner Avenue assembly plant, and St. Louis North assembly plant.

Late last week, Chrysler also announced it will assume supplier agreements with most of its 1,200 partners. In addition, Chrysler may pay suppliers based on pre-bankruptcy accounts receivable. The only good news for dealers on the other hand was that instead of 1,000, "only" 789 of them will be sent on their way.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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