GM, Chrysler Offering New Retirement, Buyout Packages - FOXBusiness.com

GM and Chrysler are offering early retirement to all UAW workers, and the buyouts are amazing.

Chrysler'* deal: "Chrysler'* early retirement package includes $50,000 cash and a $25,000 voucher to buy a car, while the Auburn Hills-based company'* buyouts include $75,000 cash and a $25,000 car voucher, according to the union memo. The buyout offer is more lucrative, with $115,000 plus a $25,000 car voucher for workers with 10 or more years of seniority at closed plants in St. Louis and Newark, Del."

GM'* deal: "GM'* offers, to nearly all its UAW employees, are less lucrative. The Detroit company is offering $20,000 in cash and a $25,000 car voucher for workers who retire early and those who simply leave the company"

And this is on top of Retirement benifits for those who have accrued them. DAMMMMMMMmmmm!!!!

I can't seem to figure out why the big 3 are having money problems. At least the unions are there to protect them.

I would not take that. It seems they want not to pay people at all. It'* less money than quite a few could make in a year even with the economy as it is. That'* a ridiculous incentive to get workers to leave, and I hope it comes back to haunt them.

I'm sure quite a few who have good retirements accrued will take it. Looking at sales numbers and the inventory for 09 they are going to eat, Alot of them arent going to have jobs anyway. Regardless of bailouts and liquidity, they arent going to build what they cant sell. And all I see is sales numbers crashing further.

I see this as a desperate act to get out from under other UAW contract provisions that are bleeding the auto makers. The older union workers usually make more than newer workers who came in at a lower grade rate, and its in the auto makers best interest to 'coax' the 'elders' out the door. A large aerospace company did this back in 1998/99, and their buyout (golden parachute) was so generous they had an unanticipated number of seasoned workers leave. This 'brain drain' forced the company to hire back many as contract employee'* and at unheard of hourly wages. The company swore to never replicate this...however; rumors are flying that a buyout might be in the near future.

I have a few friends / family members that are considering taking the buy out from GM. Of course they are eligible for full retirement benefits anyway....