Fiat Will Retain Chrysler Retiree Benefits
May 14, 2009 by Stephen Kersey
Filed under Finance
Chrysler retired salaried workers were afraid their current healthcare benefits would not transfer to the new company that is being formed by the sale of Chrysler to Fiat. A group representing the retirees asked permission to form a committee to take part in the Chrysler bankruptcy process, but U.S. Judge Arthur Gonzales denied the motion for the committee on Thursday.
The attorneys for Chrysler said the committee wasn’t necessary because benefits would continue under the new company. And though that’s not guaranteed, Gonazles agreed that the committee wasn’t necessary as the decision about the benefits would be made by the Fiat group after the sale, not by Chrysler.
It is expected that Fiat will retain benefits for the Chrysler retirees, but with cost increases for the higher-compensated retired workers.
Image: Flickr
