2008 Woodie Awards
Chrysler offers new buy-out packages to employees
by Maggie Schiller
Issue date: 4/17/07 Section: News
Kirk Kerkorian, a billionaire investor, recently placed a bid to purchase the national Chrysler Corporation. Meanwhile, the Newark DaimlerChrysler plant is offering new incentive packages for employees leaving within the next few months.
Michelle Tinson, Chrysler spokeswoman for labor and manufacturing, said the company is satisfied with the current acceptance rates of the buyout packages. As of April 4, 609 employees had taken the buyout plans.
"We are pleased with the rates, however, a final analysis has not been completed," Tinson said. "These initiatives will help the company to become competitive and sustainable in moving forward."
Approximately 700 jobs will be reduced as a result of moving to a one-shift operation by May, she said.
Cleon Deoliveria, a Chrysler employee for 30 years, said the giant downsizing is a result of a management mistake. The company did not follow the path of companies in Japan, which created innovative products, such as hybrids, when it ran into problems 10 years ago.
"They didn't follow the trend, and now they are seeing the dilemma that their decision has brought them," he said. "This is a big downfall for the American auto industry."
Deoliveira said is not happy about Kerkorian's decision to place a bid.
"I don't like that guy," he said. "He is a person who buys companies and subdivides them and sells them to make profits.
"He does this at the expense of the companies' reputation and also the people who work there, the employees that are losing their jobs. He isn't good for corporate America."
Tom Lamblack, one of the 609 employees who accepted the packages, said the company is offering are two types of early retirement and buyout packages to the workers.
"The first package is the low seniority one," Lamblack said. "It's for people who have been there four, five, eight or nine years. They are given a $100,000 check and six-month medical coverage with no dental. When the six months is over, it is as if they have never worked there.
Michelle Tinson, Chrysler spokeswoman for labor and manufacturing, said the company is satisfied with the current acceptance rates of the buyout packages. As of April 4, 609 employees had taken the buyout plans.
"We are pleased with the rates, however, a final analysis has not been completed," Tinson said. "These initiatives will help the company to become competitive and sustainable in moving forward."
Approximately 700 jobs will be reduced as a result of moving to a one-shift operation by May, she said.
Cleon Deoliveria, a Chrysler employee for 30 years, said the giant downsizing is a result of a management mistake. The company did not follow the path of companies in Japan, which created innovative products, such as hybrids, when it ran into problems 10 years ago.
"They didn't follow the trend, and now they are seeing the dilemma that their decision has brought them," he said. "This is a big downfall for the American auto industry."
Deoliveira said is not happy about Kerkorian's decision to place a bid.
"I don't like that guy," he said. "He is a person who buys companies and subdivides them and sells them to make profits.
"He does this at the expense of the companies' reputation and also the people who work there, the employees that are losing their jobs. He isn't good for corporate America."
Tom Lamblack, one of the 609 employees who accepted the packages, said the company is offering are two types of early retirement and buyout packages to the workers.
"The first package is the low seniority one," Lamblack said. "It's for people who have been there four, five, eight or nine years. They are given a $100,000 check and six-month medical coverage with no dental. When the six months is over, it is as if they have never worked there.
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