December 2, 2009
Chrysler ends summer vacation policy
Salaried employees no longer must use time during July shutdown
Chrysler Group LLC has notified salaried workers that they no longer have to use two weeks of vacation time during next year's summer shutdown.
Under previous owner Cerberus Capital Management LP, the policy for the past two years was that salaried employees were supposed to take vacation time in July when the plants closed for two weeks to retool to build the next model year vehicles.
The first year of the mandate, notice was given too late for full compliance but the change generated widespread grumbling among employees.
This year there was ample notice of the mandatory vacation, but the shutdown came a month after Chrysler emerged from bankruptcy and formed a partnership with Fiat SpA. With so much work to be done quickly under new management, many employees, especially in product development, worked through the July shutdown.
Under new CEO Sergio Marchionne, the policy for July has changed, The Detroit News has learned. Salaried employees were recently notified that 2010 vacation requests are once again to be used at their discretion, subject to approval.
Most plants and support staff will continue to observe the summer shutdown scheduled for the weeks of July 12 and 19, "except where volume demands dictate continued production," Chrysler said in a statement. "The specific schedule for each plant will be evaluated in the coming weeks and a future announcement will be made."
Plant closings are announced a week in advance, said spokeswoman Eileen Wunderlich.
Marchionne has said Chrysler wants to better match supply to demand to eliminate the need for high incentives.
Chrysler saw sales fall 25 percent in November, on top of a 30 percent drop in October.
The automaker had 64 days' supply of vehicles at the end of November and said inventory has been cut 56 percent since a year ago.
LINK:
Chrysler ends summer vacation policy | detnews.com | The Detroit News
