The fact that Chrysler is [still] offering buyouts to its United Auto Workers (UAW) employees is not news. The fact that this money is coming from the federal government is also no biggie, actuality-wise. I mean, whose money did you THINK they were using? But the Detroit Free Press report that ChryCo has upped its cash-and-a-car offer to its unionized veterans—to convince them not work at the bankrupt automaker’s closed factories—is a bit odd. Yes, “The autoworkers are now being offered up to $115,000 plus a $25,000 vehicle voucher to leave Chrysler voluntarily. The larger lump-sum payment, which was increased from $75,000 in earlier buyouts, is available to workers under 50 years old who have 10 or more years of seniority. Workers 50 or older who qualify for some pension benefits won’t receive that type of onetime payment. But those with 30 years, or whose age and years together exceed 85, will receive $50,000 plus the $25,000 voucher for a new Chrysler vehicle.” And here’s the kicker . . .
The new offer, which eligible workers have until May 26 to accept, provides a cushion for several thousand workers who could lose their jobs anyway.
So Chrysler’s paying workers to leave who have to leave anyway because . . . ? Perhaps this has something to do with the UAAW’s willingness to be best man at the Presidential Task Force on Automobiles shotgun wedding between Chrysler and dowry-less Fiat. One thing’s for sure: whenever the UAW’s involved, read the fine print. These guys could—in fact are—sucking blood from a stone.
If I were a Chrysler worker, I’d take that deal in a second and buy a potato farm tomorrow. The buyout should also offer a voucher for a truckload of Quaker instant oatmeal.
I agree, Mr MikeyDee.
I would tear Chrysler’s hand off for that deal.
I’d pay my mortgage off, get a nice shelf-stacking job and spend the rest of my days watching the economic fallout.
So they get $155k of our tax money —plus a car, but it’s a Chrysler so it doesn’t amount to much, really— to leave when they could have been just terminated and get unemployment like the rest of the jobless Americans? More proof, if you needed it, that UAW workers lead a truly charmed life.
$115k doesn’t really go all that far, but it’s a great start to a displaced worker. I’d take it in a second.
But I think it’s just a clever way to move their inventory. ;)
$115k doesn’t really go all that far,
For UAW folks, that’s more than 1 year’s salary OR enough money to get a degree and/or go to a technical school and learn a new trade.
So, they’re being offered a new car and more than a year’s salary.
Hey UAW guys, TAKE THE OFFER, GET RETRAINED IN A VIABLE TRADE AND THEN GET OFF THE TAXPAYER TEET.
Actually the taxpayers are footing the bill.
Chrysler doesn’t have a pot to pee in.
So the payoff to the UAW continues.
Those that work for Chrysler Leyland are more equal than the average taxpayer.
Within six months the US economy is going to pay dearly for this Marxist government. So the taxpayers will be burned twice.
I would take it and use it to relocate out of the economically depressed region they probably live in. Then buy the Potato farm in Idaho with the rest.
funny thing is, I’ve already seen people use their $25k voucher to get a car, and drive it right up to the Toyota store to trade in on a Camry.
Again, why are we paying people to quit? I thought Chrysler declared bankruptcy. Wouldn’t they be able to void their existing labor contract in reorganization?
Oh, that’s right… it was PRE-PACKAGED.
I get it, now. We’re going to pay the guy who sweeps the floor of the factory $140,000 to quit his job at the bankrupt company.
Makes me wish I won the lottery, too. I could have been paid 5x the market rate, helped produce a product which couldn’t sell, drove my company into the ground, and get $115,000 (paid for by my neighbors) plus a crappy car to lose my job.
Stimulus. He’ll surely go out and buy a house, now. Seeing as how no one can get credit, he’ll just pay cash. Obama is a genius!
I’d just like to point out that a lot of that money is going to go right back to the government as taxes. If a UAW employee was making $50K, They’ve already accrued $20K in salary. Add the 115K and the voucher for 25K and they’ve just joined the “WTF is this AMT thing” crowd at a gross income of $160K. They will be lucky to see half of that in cash assuming they sell the car and even less if they don’t.
It could actually be argued that this is a pretty effective way of recovering much of the Chrysler bailout money.
Let’s see….the UAW worker gets offered $115,000 plus a car to leave versus the typical OEM salaried severance package of one month’s salary for each year served (usually with a 20 month ceiling). Hmmm-that will teach the white-collar salaried folks to unionize. Or not.
I have never understood why the OEMs cannot get the simple fact that the UAW are The Employees…yet they treat them like their own personal overlords. Weird.
Wow I wish. That is one sweet deal.
My company is in Chap 11. They are cutting and anyone cut is not even getting severance, not even a dime. Just an hour to clean their desk and a boot to the curb.
But of course we still have money for the executives to give themselves bonuses. :-(
You can’t judge if you’ve never walked in the shoes of an autoworker…
Don’t any of you tell me that you would refuse that kind of money becasue “it’s the right thing to do”.
Envy is the art of counting the other fellow’s blessings instead of your own.
We lost funding and was given two weeks notice and a luncheon to say good bye – then the market tanks and my 401-K takes a beating – I worked 27 years on the same government contract and lost the job when the funding was cut-off – contractors not eligible for severence pay so we were left on our own to survive (and we did) – this deal with Chrysler and our tax dollars really is too much. The UAW helps to ruin the auto industry and then gets a sweetheart deal paid for by the tax payers – how can we complain about the golden parachutes the execs are getting?
Since Chrysler will never resume production, take the money and run.
Main aim must be Sterling Heights and other closing facilities.
Oatmeal goes a long way to feed a family. If you get tired of Oatmeal all the time, switch to potatoes.
Also, that new Chrysler could make a great storage facility for clothes, books and other items that were in your attick before your home was taken back by the bank.
Sounds great. But…
If a company is going bankrupt and promises something, is this company obliged and able to pay for these promises?
Other question: How much will the recipients have to pay on income tax for this?
It might turn out that such offers are not that much of a deal, except for the state that will (via private income tax) get back at least some of the money shelled out for saving the automotive industry.
I would not be too surprised if US bankruptcy law would not allow eager bankruptcy lawyers to sue these recipients for paying back the money they have received (after having already paid taxes on it).
German bankruptcy law, for example, would allow for such weird scenarios.
Depending on the legal situation, I would be reluctant or very eager to sign such a contract.
A more pragmatic question
What is the best vehicle to pick up for the $25K?
And why?
Transport?, re-sell?, mad max conversion for the apocolypse?
UAW being rewarded once again whether they actually work or not. The parasite has choked the host and now the parasite is the only living one of the two. How long can a parasite live without a host?
What about taxpayer funded bailouts for the 789 Dealers employees? Oh wait, they are not UAW members. Sooooo, let’s protest the UAW workers and vaporize all the others. Brilliant!
Let’s see more data on the $$ spent per employee in this whole shameful Chrysler mess; UAW, white collar corporate and now the dealers.
Each and every one of us will end up paying higher overall taxes to pay for what the USA gov’t has done over the past several months.
It is going to take this administration quite a while to run out of other people’s money, I’m afraid.
You can’t judge if you’ve never walked in the shoes of an autoworker…
Don’t any of you tell me that you would refuse that kind of money becasue “it’s the right thing to do”.
A nice sentiment. Now give me my tax money back and I won’t care what Chrysler, a private company does.
It is going to take this administration quite a while to run out of other people’s money, I’m afraid.
Well, if the people still reelect the same congress 2 years from now – they’ll truly deserve what they get.