Chrysler moves perplex union

Rescinded buyout offers, no concrete plan leave employees’ future with carmaker in limbo

Eric Morath / The Detroit News

It’s no buyouts, no layoffs and a lot of uncertainty for salaried employees at Chrysler LLC’s Auburn Hills headquarters that are represented by the United Auto Workers.

A confusing and contradictory series of layoff plans and cancellations over the past few days has local union leaders perplexed.

After word spread Wednesday that about 200 salaried UAW workers were expected to be laid off today, top national union officials stepped in to negotiate with management and won a reprieve, according to Jeff Hagler, president of Local 412, which represents the affected employees.

But Chrysler management on Thursday said the company has no concrete plan to cut as many as 200 design and engineering jobs.

"We couldn’t believe some of the moves (Chrysler) was making," Hagler said. "Especially right at the holidays — so we appreciate the reprieve."

The bizarre series of events began weeks ago when many of the unionized white-collar workers at the headquarters say they were led to believe they might join some 1,000 non-union colleagues who are taking buyout or early retirement packages.

Last week, those UAW workers learned that their expected buyout offers were rescinded.

Buyouts have been the preferred method for auto companies to cut down their staff in recent years, both union and non-union.

Then Wednesday it appeared that instead of buyouts, layoffs — or involuntary departures — were in order. A source close to the situation said Wednesday that plans called for 200 UAW workers to be cut today.

That changed Thursday when workers say they got word the layoffs were canceled. The company could still look to slash those jobs again next year, Hagler said. "My hope is that we can start fresh in the New Year with the company and work together in a constructive way," he said.

Chrysler has not publicly announced buyouts or layoffs for the salaried UAW workers.

"In an effort to right-size the company we continue to evaluate all operations," Chrysler spokeswoman Michele Tinson said Thursday. "At this time, no official action has been taken toward salaried-bargaining unit employees at the Chrysler Technical Center."

Buyouts may save jobs

Some workers believe if those buyouts were extended and accepted, other employees’ jobs that had been slated for layoffs would be saved. Layoffs are likely to impact the least senior unionized engineers and designers, while buyouts are typically offered to the most veteran workers.

A Dec. 14 memo from Rebecca Conway, human resources official for the automaker’s scientific labs and proving grounds, stated that such buyout packages offered to salaried-bargaining unit employees at the end of November are no longer authorized.

Workers represented by Local 412 were to be the first unionized staffers affected as part of Chrysler’s plan, announced Nov. 1, to cut as many as 12,000 more jobs. More than 2,000 white-collar and contract workers have, or will, leave Chrysler by the end of this month.

Typically, laid-off workers receive 95 percent of their pay for up to 48 weeks. By contrast, those taking buyouts lately have received packages that included pensions, retiree health care benefits and car vouchers.

"Corporate union relations has advised us that the International union has decided not to support the offering of retirement packages or (voluntary termination plans) at this time," the Dec. 14 memo stated.

UAW International officials did not retuned calls seeking comment.

Chrysler’s Tinson said the company continues to work with the union to develop buyout packages, but so far this year the only UAW workers to officially receive buyout offers are at the automaker’s two plants in suburban St. Louis. Those buyouts are intended to reduce headcount ahead of a shift reduction at the St. Louis South minivan plant next year, as announced in February.

In November, Chrysler said its planned cuts included 8,500 to 10,000 union jobs, and most would be eliminated at five more Chrysler assembly plants that are to lose a shift next year. Workers at those plants have yet to learn if they’ll be offered buyout packages.

Chrysler and Detroit’s other automakers, have, or are taking sometimes difficult steps to pare down their work force in light of shrinking market share. But when uncertainty runs rampant among workers it can do harm, said John Henke, an auto analyst and president of Birmingham-based Planning Perspectives Inc.

"It causes employees to focus on what their future is rather than their jobs," he said. "Morale is already in the sewer and this only makes it worse."