Automaker Chrysler LLC is offering another round of buyout and retirement incentives to hourly workers, a union official said according to the Associated Press.

The official -- who asked not to be identified -- said Chrysler issued a memo to the union with the offers on Friday. The company has not confirmed the report.

A production worker represented by the United Auto Workers union earns approximately $29 per hour. A replacement worker could be paid $14 per hour, given cheaper health care and retirement benefits, under the conditions of a new contract that began last year, AP noted.

Chrysler received a $ 4 billion bailout from the U.S. government on Jan 2 under which, the group must meet a cost cutting target, including labor costs reductions.

Chrysler