Chrysler Announces Job Cuts, Shift in Health Costs

Chrysler announced yesterday that it expected to cut 10% to 15% of its 14,900 salaried jobs in the U.S., or up to 2,235 positions. The cuts are part of a plan put forth by its parent company, DaimlerChrysler, to eliminate 6,000 jobs worldwide by 2008. According to the New York Times, Chrysler's chief executive, Thomas W. LaSorda, told employees by e-mail that the company did not plan layoffs, but would seek volunteers to take part in buyout programs.
The automaker also said yesterday that most of its salaried employees would pay more for health coverage beginning next year. Chrysler reported that its annual health-care bill of $2.3 billion is double what it was in 2000. The company said its average health-care cost per salaried employee is $11,000, of which the employee pays approximately $3,000 or 27%. Under the revised plan, these workers will pay an average of 31% of their health-care coverage.