Chrysler Hourly Workers Face Temporary Layoff

Summary: Despite attempts to prevent jobs cut, Chrysler’s hourly workers were forced to take unpaid leave at least for a month.

Few days ago, even with billion-dollar worth of stimulus package, the carmaker giant filed for bankruptcy that will allow them to reduce expenditures and ultimately recover from the financial meltdown.

After carmaker giant Chrysler Inc. declared bankruptcy, hourly workers were forced to take unpaid leave for a month or more depending if the contingency plans will work for the ailing auto company.

With the temporary furlough, auto workers expressed their anger as government stimulus packages and contingency plans have not been successful in keeping them from their jobs.

Despite attempts of workers to help its company, such as giving up bonuses and offering their health benefit funds to Chrysler (making them owner of 55 percent of its stocks), temporary layoff has still been implemented to keep its finances afloat.

Meanwhile, several of Chrysler’s factories will also be shut down at the moment.

Few days ago, Chrysler filed for bankruptcy that will allow it to lessen expenditures.

With the meltdown of the carmaker’s finances, the suppliers especially steel fabricators which provide Chrysler with materials in making vehicles are also affected by this turn of event.

In an earlier report, DPR Manufacturing and Services which provides Chrysler and other automakers with steels, was forced to reduce its workforce and cut output. The steel company has also sought other clients to reduce its dependency to carmakers which are experiencing slumping sales and weak demand.