Buyout offer to UAW-represented employees extended

Posted on Tuesday, April 28th, 2009 at 5:30 PM EDT.

UAW workers at Chrysler will have until May 25 now to decide on a buyout offer, so they will know whether the company is in bankruptcy and how a retiree health care trust will be funded, the Detroit Free Press is reporting.

This is the third extension for the offer, which some of Chrysler’s 26,000 hourly U.S. workers have already accepted, the paper said. According to the Free Press, neither the company nor the UAW has said how many have already accepted.

Those who accepted, but want to withdraw their acceptance until May 25, had to notify their facility’s human resources department by Monday, according to a letter from General Holiefield, vice president of the UAW’s Chrysler department, that the Free Press was given. The Free Press reported that Holiefield also said those who have accepted will be entitled to any future improvements in the offer that may be negotiated between the UAW, Chrysler and Fiat.

The buyout provides a taxable lump-sum of $75,000 and a $25,000 voucher for a new Chrysler LLC vehicle for those under age 55 with at least one year of seniority, according to the Free Press. Those between 55 and 62 years old with at least 10 years of service can retire with their full pension benefits, the story said. (Detroit Free Press)

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