Chrysler announced today that they will offer buyouts of up to $100,000 to its hourly employees. Chrysler had just last year renegotiated their contract with the UAW to allow them to hire some new workers at a lower pay scale.
From a personal finance angle, would you take 2-3 years salary or keep your job?
For e it would be tempting as it would push me to start my own business, or buy one that I have been considering. With that sort of cushion behind me I could afford to take a bit of a risk...But it is still a risk.
There is a reason they are doing this. It isn't out of the goodness of their heart, just ask the 33% of white collar workers that were offed. They got basic severance. However the blue collar workers have a contract and the company can ill-afford a strike, nor the payout from violating the contract.
The US based manufacturers are getting leaner everyday, which will hopefully mean healthier, although a credit crisis won't/isn't helping.
If you did take the money what would you do? Would you be able to budget and manage your money, a lump-sum, over multiple years? Especially if you couldn't find work?