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Chrysler retirees may face cuts

Post Time:May 06,2009Classify:Industry NewsView:89

United Auto Workers President Ron Gettelfinger said more short-term cuts may be ahead for Chrysler LLC retirees as the union waits to receive--and then sell--its 55 percentin a new company to be created by merging Chrysler and Fiat SpA

"Right away it's going to be tight, and there may be more cuts, but in the long run, we think the retirees will come out OK," Gettelfinger said in his first public appearance since Chrysler filed for bankruptcy protection last week.

He said there is about $1.5 billion in the health-care trust for Chrysler retirees, which the union won't access until next year, and the first payment into the trust, which is also slated for next year, will only be about $300 million, according to a May 5 article in The Wall Street Journal.

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Source: http://www.glassmagazine.com/news-item/auto/chrysler-retirees-may-face-cutsAuthor:

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