Auto parts maker AW North Carolina has offered buyouts to all 1,100 employees at its Durham Treyburn Corporate Park location. The company, whose parts go into Toyotas, is hoping 500 employees will accept the offers, leaving the supplier with a leaner workforce more in line with industry standards.
AW foresees a prolonged auto slump and believes the smaller workforce will allow it to continue operations. In January, the company furloughed 280 workers, who have also received buyout offers. The offers contain severance payments based on length of service, as well as lump-sum payments for health care and other needs.
Note: Offering buyouts to all employees blunts any charges of age, race or gender discrimination. Under this approach, who stays and who goes is largely determined by the employees themselves.
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