GM Aftershock: how we're all handling the news
The business world is all up in arms over yesterday's announcement by GM that the company will lay off 30,000
workers and close nine plants. We've scoured the internet to find some additional stories of how the industry, the
markets and people in general are reacting to the news, specifically those affected by it most - the workers.
Note - there's been of flood of articles by media outlets on how plant closings will affect small communities, we
chose one from ABC News about how the impact of closing a production line at Saturn's Spring Hill, TN plant will affect
the locals there.
New York Times
Mix of Shock and Resignation on GM Shop Floors Set to Close
ABC News
GM Plant Closing Has Impact on Tenn. Town
CBC News, Canada
GM cutting over 3,600 jobs at Canadian plants, 30,000
across North America
Star Tribune
Twin Cities dealers find hope in GM's plans
BusinessWeek
Stocks
drift higher despite GM, oil
Associated Press
GM moves to cut costs do little
to assuage investors
Reuters
GM cuts to hit US confidence
Reader Comments (Page 1 of 1)
ZipperSeven 11:07PM (12/18/2005)
SaturnFans.com is reporting that Spring Hill is *not* closing.
http://www.saturnfans.com/Company/2005/endofthelineion.shtml
Reply
Finished.Law.School 11:07PM (12/18/2005)
I found the UAW response to be entertaining. They conveniently avoid making any mention of being overpaid for their "work."
Reply
Elliott 11:07PM (12/18/2005)
These articles are so emotional. "Our town is going to be devastated" articles and the "I can still afford to eat because our town was spared" articles are everywhere. So many people... sad.
Many heartfelt apologies. I am only a low ranking accountant, but GM / Ford / I have failed you.
Reply
Dustin Tarditi 11:07PM (12/18/2005)
Are the senior managers taking corresponding compensation cuts? Declining bonuses? I hope so...
Reply
Chad 11:07PM (12/18/2005)
NPR this morning was commenting on this, they noted that the downsized workers, thanks to UAW contracts, will continue to receive full pay for doing NOTHING until they either retire or find new employment. If that's true, then the impact of this shouldn't be all that great and it's more of a move to appease investors than to actually save money...
The other thing I find funny is the UAW people who were saying 'The workers are being hurt by the companies failures' like that's some sort of unfair auto maker thing... Come on, clearly GM has made bad decisions and is responsible for the current situation, but how is that different than anywhere? It amazes me they seem shocked that employees are impacted when the business does poorly. Hello? Welcome to reality!
Reply
Dave T. 11:07PM (12/18/2005)
no one cried for all the tech people impacted when the web bubble burst that's for sure.
Reply
Joel 11:07PM (12/18/2005)
"I was awakened out of my sleep and told the plant was closing," said Tammy Andrews, 35, a line worker at the General Motors assembly plant in Doraville, Ga., just outside Atlanta. "I'm going to cry when I go home tonight."
- from the New York Times, November 22, 2005.
So someone has to wake up GM workers to give them important news. Do you suppose this has something to do with GM's problems?
Reply
Henry Ford 11:07PM (12/18/2005)
I'm absolutley with Dustin on this one! GM IS THE MOST GROSSLY MIS-MANAGED CORPORATION IN THE USA. While they're cutting 30,000 blue collared jobs - how many white collared jobs are being cut?? It was reported last night that 3 highest ranking officers in the company are pulling in MILLIONS in compensation. EACH of these buffoons needs to start writing checks to all 30,000 employees who'll be loosing their jobs, their homes, probably everything.
Reply
Chris K 11:07PM (12/18/2005)
No kidding, Dave. I was out of work for over a year when the dot com bubble burst. All the newbies flooding the tech market ate up the few jobs that were available.
I am (well, was until a few months ago) a Pontiac owner, and even *I* have absolutely zero sympathy for UAW workers that have:
1) Been paid to do very little work for decades.
2) Have done substandard work for decades.
3) Have gotten paid obscene amounts of money and benefits for decades.
4) Have caused the demise of one of the largest US corporations by their union's greed.
5) Are only NOW having to pay the piper for their sloth and greed.
Find another job, if you can, line workers.
Reply
Mike 11:07PM (12/18/2005)
I think Ottawa, Ontario lost that number of people when the IT industry collapsed, but noone cried foul. If there weren't unions involved, we would all shrug and continue our daily routines at this news. It happens people, deal with it. That's the nature of the beast.
Reply
Sparkdog 11:07PM (12/18/2005)
We might be headed for another american depression. It is sad. As a GM fan I understand that if GM falls, America falls. Remember that GM makes many war vehicles and the sadness well hopefully fall when GM hopefully breaks the news with good news.
Reply
Desri_005 11:07PM (12/18/2005)
"EACH of these buffoons needs to start writing checks to all 30,000 employees who'll be loosing(sic) their jobs, their homes, probably everything."
Did you read any of the articles? These people get 95% of their pay for 25 months after their jobs are terminated in 2008. That means they have 5 years to find other employment.
Reply
KT 11:07PM (12/18/2005)
Here's part of a USA TODAY article:
"DETROIT -- General Motors faces a difficult obstacle in its plan to cut 30,000 jobs and close nine plants in the USA and Canada by the end of 2008: its union.
The automaker announced the moves, designed to slash its costs and return it to profitability, on Monday. But simply stopping production won't mean great savings for GM.
Its contract with the United Auto Workers forces the automaker to continue paying workers most of their salaries even when plants close.
What GM needs is to get the union's help in pushing many of its older workers into early retirement. CEO Rick Wagoner said GM will seek such an agreement with the union.
Those negotiations likely will be tough. The union reacted angrily to the announcement."
How can GM/Ford ever be competitve when their workforce has this attitude? The company is sinking and they probably won't budge when it comes to negotiations.
They want to blame it on mgmt and poor decisions. However, they are just as much to blame by being unflexible when it comes to capacity. If GM/Ford were able to react to market conditions without the threat of a work stoppage they could be more competitive.
Most anti-domestic folks point out that they don't care for GM because of it's quality (or lack of). The majority of recalls are due to how the vehicle is assembled (or parts which are also made by union workers) not because a marketing decision.
It is very sad this has to happen but they could be in worse shape (not getting 95% of their pay).
Reply
torcik 11:07PM (12/18/2005)
I found the UAW response to be entertaining. They conveniently avoid making any mention of being overpaid for their "work."
>>>I also find true about al ot of lawyers
Reply
Ima Freak 11:07PM (12/18/2005)
I find it absolutely remarkable the extent to which people find pleasure in the troubles of others. I would like to know how many people posting here ever worked in an assembly plant? Very few would be my guess.
Anyway, who is to blame? Both the corporation and the union are to blame for being short sighted. Both are to blame for not being flexible. Both are to blame for not having a better working relationship.
Are the line workers paid well? Of course they are in most instances. Is that a bad thing? Before you answer, bear in mind that when salary and bonuses were distributed (they really did have bonuses at one point) and totalled, the CEO made 2000 times more than I did.
I knew it would not last forever, so I saved what I could and moved on. However, I was young. People who have 20 or nearly 30 years are going to have difficulty adjusting regardless of a time frame.
So in the future, try to have some grace before relishing the misfortune of others.
Ima Freak
Reply