Chrysler town and country

Chrysler Canada says it is cutting its salaried, white-collar workforce by 25 per cent, or almost 240 jobs, as the downturn in the North American auto industry deepens. In announcing a continent-wide reduction of staff and contract workers, the company’s Detroit-based parent said yesterday it would achieve the reduction through lucrative voluntary retirement incentives, buyout programs and layoffs during the next few months.

When the Canadian subsidiary completes the reduction, its salaried workforce will fall to about 700 ‘“ down 465 jobs or almost 40 per cent from five years ago. Bob Nardelli, chair and chief executive officer for Chrysler LLC, said the unprecedented decline in the global auto industry meant the company needed to take the action to remain competitive. Earlier this week, the company accelerated the closure of an assembly plant in Delaware and cut a shift at another plant in Ohio.

Chrysler also slowed down output at its Windsor minivan complex this month by cutting one shift for two weeks and possibly three. In the past five years, Chrysler Canada’s hourly-paid production workforce has dropped more than 1,000 jobs to 8,925. The company has eliminated a shift at its Brampton assembly plant and trimmed the Windsor workforce by a few hundred jobs.

Chrysler would not comment on how many contract workers it currently employs in Canada who also face an overall cut of 25 per cent. People familiar with the latest incentive program said staff in the U.S. between 51 and 62 with 10 or more years of service who earn less than $100,000 annually can receive full retirement benefits and health-care credits. Selected staff between 53 and 62 who earn more than $100,000 can also qualify for full retiree benefits.