It's understandable that workers are reluctant to take buyouts since unemployment keeps rising.

Chrysler is making a new  early retirement offer to members of the United Auto Workers Union at six factories, including two Detroit area plants, which are now slated to be left behind when the “new” Chrysler emerges from bankruptcy.

The offer comes on top of another outstanding buyout/early retirement package that was first presented to UAW members back in February and is set to expire May 26.

The objective of both buyout and early retirement packages is to reduce the size of the company’s hourly work force in the U.S. from 26,000 to about 22,000 or less, according to documents filed with the US Bankruptcy Court for the Southern District of New York.

UAW members at the Sterling Heights Assembly in Sterling Heights, Michigan, Conner Avenue Assembly plant in Detroit, Kenosha Engine in Kenosha, Wisconsin, and Twinsburg Stamping in Twinsburg, Ohio, and two assembly plants in Fenton, Missouri, near St. Louis, have until May 26 to accept the new offers, Chrysler officials said.   

Any workers’ years of service and age that exceed 85 or who are 60 years with at least 10 years service can retire with a $50,000 taxable lump sum, plus a $25,000 voucher for a new Chrysler vehicle.

A Special Early Retirement option was also offered at the two St. Louis-area assembly plants and at Kenosha and Twinsburg. Workers between the ages 50 to 62 with 10 years or more of pension credited service can retire without their earned pension benefit being reduced for retiring early.

At the two Detroit-area plants, the retirement options was made available to blue-collar workers between ages 55 and 62 with 10 or more years of credited service. These offers also included a retiree, health-care package that was modified as part of the union’s recent concessions to Chrysler and the Italian-carmaker Fiat.  Fiat and the UAW are expected to be the company’s principal shareholders after the “new” Chrysler emerges from bankruptcy.

Chrysler is also offering an enhanced voluntary termination of employment for those with between one and nine years of seniority. It offers a taxable $75,000 lump sum and a $25,000 vehicle voucher.

Anyone with 10 or more years can receive a taxable $115,000 lump sum and the $25,000 vehicle voucher. In addition, the offer includes Chrysler health care coverage, minus dental, for one year after the workers are dropped from the automaker’s payroll.

Workers at the St Louis-area plants who don’t qualify for any other plans, but who could retire within the next 24 months, can receive 85% of their base wage until they are eligible to retire, according to information provided by Chrysler.

Chrysler has extended this offer three times since initially offering it in January.