Chrysler workers offered up to 100k to leave

Take it and run.

Jim, are you and Tim Related?

Not that I know of.

What do they do if they have a lot of equity in a home and everyone in their town is trying to sell theirs?

Ted

Then, if true "equity" is defined as the difference between market value and what is still owed, it is no longer a "lot of equity" (since the local market became super-saturated), making the question oxymoronic. Perhaps your question was meant to be a leading one to point to that conclusion. To answer your question, since the local job market will aslo be saturated, then they would be in the proverbial pickle.

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

Well I hope they keep employees enough to continue manufacturing the new Jeep Compass. IMO the Caliper is ugly, but the Compass is rather nice looking. I'm not into having a Jeep, but perhaps!

They can hope that Toyota opens a plant in that area.

Bingo!

Is there any other conclusion when the biggest employer in town shutters it's doors? I notice they are being very coy about what locations they are going to offer this package in.

On one hand I have to give them some credit - they are at least giving the employees something better than a sharp stick in the eye.

But on the other it really seems like a lot of these folks are going to be totally screwed. On one hand they are going to get their severance payout eaten up by the equity loss. Then on the other the one-time payout is going to push them into a higher tax bracket.

But the thing that I really don't understand is I recall reading about massive layoffs and such in the auto biz two decades ago. It certainly seems like Detroit could have simply -not hired- people during the last 20 years and accomplished the same workforce reduction with a lot less social pain.

Ted

Bingo!

Is there any other conclusion when the biggest employer in town shutters it's doors? I notice they are being very coy about what locations they are going to offer this package in.

On one hand I have to give them some credit - they are at least giving the employees something better than a sharp stick in the eye.

But on the other it really seems like a lot of these folks are going to be totally screwed. On one hand they are going to get their severance payout eaten up by the equity loss. Then on the other the one-time payout is going to push them into a higher tax bracket.

But the thing that I really don't understand is I recall reading about massive layoffs and such in the auto biz two decades ago. It certainly seems like Detroit could have simply -not hired- people during the last 20 years and accomplished the same workforce reduction with a lot less social pain.

Ted

Over the years, whenever there were community impacting layoffs like this that special arrangements are made with governments. I remember when - I think it was Philip Morris, or maybe it was IBM - had some big layoffs 15 or so years ago, part of the package was that they not only got the lup sum, but that they collected unemployment benefits as well. Is it possible that special taxing exempting arrangements are also made to leesen the burden?

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

Yes - I do remember people being able to both collect and their taxes for the lump sum were taxed differently. I can't remember at what rate though.

And on the third hand, it is up to individuals to take whatever measures ahead of time are necessary in their lives to keep things going in a financial emergency. It's not like we are talking about people with minimum wage jobs here who had no way of building a fallback fund of some type - 401K or whatever. An employer and the government are not responsible for guaranteeing a job or compensating you or me if we lose ours. It's nice if they do, but it's not to be counted on.

Yes - in a massive layoff, the commnuity suffers, but the individuals were responsible for creating their own safety net. Remember the children's story of the squirrel who played all summer and didn't store away any nuts for the winter? But I guess that goes against the modern socialist thinking.

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

I'm not arguing that the SOL autoworker isn't partly responsible for not looking at the handwriting on the wall and getting out several years before the boat sank.

But the managers and owners have a responsibilty also, and that is to run the company with good management.

It also goes against the modern socialist thinking that corporate heads that drive companies into the ground should have their golden parachutes removed.

Ted