Chrysler's cuts will be deeper in Fenton

By Christopher Boyce

ST. LOUIS POST-DISPATCH

03/21/2007

Job losses at Chrysler Group's operations in Fenton will be deeper than the figure announced last month by German parent DaimlerChrysler AG. Chrysler intends to cut an additional 635 jobs on top of the 1,300 jobs that the automaker had planned to slash from its local work force.

Chrysler says it hopes to eliminate all 1,935 jobs through retirement and voluntary severance packages rather than layoffs.

Last month, Chrysler announced the loss of 1,300 jobs as part of a plan to eliminate one of the two shifts at the South Assembly plant next year. About 300 jobs would be lost this year, and 1,000 more cuts would come in the second quarter when the shift is ended.

At the South plant, about 3,200 people now assemble the Dodge Grand Caravan and the Chrysler Town & Country minivans.

t the time, the automaker didn't announce cuts at the North Assembly plant, where about 2,330 employees build Dodge Ram pickups.

However, Chrysler plans to cut another 375 jobs this year at the North and South plants, and then an additional 260 jobs across both plants in 2008 through 2009. The automaker said these reductions would be the result of improved productivity, labor-displacing technology and efficiencies.

Eligible employees at both the North and South plants will be allowed to request a termination package beginning Monday, the automaker said.

Chrysler first will see how many employees accept retirement offers and then offer voluntary termination packages to local workers.

In a plan negotiated with the United Auto Workers union, Chrysler plans to offer hourly workers a $70,000 retirement incentive for those with at least 30 years of seniority, or $100,000 for employees with more than one year of seniority who accept voluntary termination.

Retirees will keep health and other benefits consistent with their union contracts, while the other workers would get six months of medical benefits.

Glen Woemmel, president of UAW Local 110, said he has yet to receive any notification from Chrysler about the exact number and timing of the cuts at the South plant. Local 110, which represents South plant workers, will hold meetings with the membership soon to discuss the retirement and severance packages, but the value of the sessions would be limited without specifics, he added.

No officials were available for comment from Local 136, which represents hourly employees at the North plant.

Despite the pending job losses, Chrysler has said its restructuring plan will not affect plans to upgrade its facilities, particularly the South plant.

The South plant will close in late May to begin retooling so it can assemble the redesigned 2008 models of its minivan lines. Chrysler also plans to convert the South plant into a flexible manufacturing facility, allowing it to rapidly assemble up to four vehicles on a single assembly line.

Chrysler announced in December 2005 that the conversion would be part of a $1 billion proposal to retool and upgrade both of its plants in Fenton in the coming years.