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Navistar’s retirement offer taken by workers

Nearly 100 accept incentive to leave early, which could allow company to recall laid-off employees.

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By Kelly Mori, Staff Writer 7:50 PM Saturday, January 15, 2011

SPRINGFIELD — Nearly 100 Navistar employees have accepted the company’s retirement incentive offer, possibly opening the door for some laid-off employees to return to work.

Of the 350 individuals eligible to retire from Navistar, 81 members of UAW Local 402 and 16 members of UAW Local 658 took the retirement package incentive of $17,500, according to plant officials.

Union workers were offered two types of separation incentives as part of the new, four-year contract signed in October. The first incentive was offered to individuals who had been on long-term layoff. They were offered $17,500 to sever all ties with the company. Their deadline to accept the offer was Nov. 30. The second incentive was also $17,500 offered to workers eligible to retire. Their deadline was Dec. 31. The company reported 98 individuals took the separation package; 97 individuals took the retirement.

Doug Miller, a 38-year employee, said he had planned to retire in three years, when he turned 65, but decided to accept the company’s offer to retire now. Since he is not eligible for full Social Security benefits, the package will supplement his income until he can draw full benefits.

Miller said he was not surprised that less than one third of eligible employees took the offer.

“I think a lot of people are afraid of retiring right now because of the economy,” he said. “It’s hard to tell what is going to happen. Take the recent increase in gas prices, for example. If inflation kicks in, like some people are predicting, that’s a scary time (to be on Social Security).”

The 97 retirements do not mean that 97 individuals will be called back, but many of them will, said Navistar spokesman Kyle Rose.

“I believe we have already started back-filling some of those positions,” he said. “We will recall them as needed.”

About 250 individuals are laid off from the plant, some for longer than two years. Miller was aware of the statistic as he considered his options.

“It was in the back of my mind that if I go out and some others go out, it will make room for some other young people to come back in there,” he said.

Carol Requarth is one of those workers hoping to be called back.

“I’ve been laid off since August 2008,” said Requarth, who was hired in 1994, “I didn’t take the (separation agreement) incentive because I believe I will go back.”

Requarth, who also owns her own small business, said she does not know where she falls on the recall list, but she is hopeful.

“You know, I’ve worked there for 16 years and it’s a great place to work,” she said. “The people are great, the quality of the work there is just excellent — 200 percent.

“I hope I get the chance to retire from there.”

“We want to wish them well and welcome back those back from layoff and start making trucks again.”

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