Reeling under pressure to further reduce labor costs further, as per the conditions of a $17.4-billion US bailout, the two struggling automakers - General Motors and Chrysler - are offering incentives to their hourly workers who are looking for an exit.

A letter addressed to union members by the United Auto Workers union vice president General Holiefield - who heads the union's negotiating team with Chrysler - said that Chrysler's offer to almost all its 27,000 US hourly workers includes up to $50,000 in cash, along with a $25,000 voucher for the purchase of a new Chrysler vehicle.

Meanwhile, the incentive GM plans to offer to its US hourly workers for retiring or leaving the company comprises a cash amount of $20,000 and a voucher worth $25,000 to buy a new vehicle manufactured by the company.

According to the terms of the emergency federal lending, a February 17 deadline has been set for both GM and Chrysler to demonstrate how they can reduce debt, labor costs and other expenses; and prove they are feasible despite the slump in demand for new cars and trucks.

Along with the lately announced buyout offers to workers, the automakers had last week called upon the UAW to abolish their so-called "jobs bank", which had provided almost a full pay package to the UAW members whose positions were done away with, in the name of cost cuts!