UAW pres expects 15,000 workers to take GM buyout
Once you have cut everyone, who is left to cut? That's the problem facing GM, according to UAW President Ron Gettelfinger. The General has already harvested the low hanging fruit with previous buyouts, but they're embarking on another round to try and further reduce labor costs. We've already covered the specifics of GM's latest buyout offer that attempts to sweeten the enticement to leave so that cheaper labor can be brought in. The new offer was made to 74,000 employees, and Gettelfinger estimates that about 15,000 will accept the offer. Uncertainty over what the US economy is likely to do in coming months is playing a role in the decision for the roughly 46,000 GM employees eligible for retirement. Money is no longer pouring out of the housing market, and people who thought they'd cash out for a retirement in tropical climes are rethinking their plans while we all wait on tenterhooks to see what our brush with recession will look like. In 2006, GM was able to entice 34,000 workers to leave, but since then the world economy has been stricken by a raft of bad loans made by brokers without scruples, so sitting tight and waiting out the storm might look like a smarter option. Sitting tight for just a little longer might look wise considering the accolades for GMs cars as of late. It really appears like the turnaround has gained some traction. Then again, if you're staring down retirement, putting a fat lump of cash in a tax free 401k might look awfully attractive, too.
[Source: Detroit News]
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Reader Comments (Page 1 of 1)
TriShield 11:50PM (2/14/2008)
Accolades or not the vast majority of GM's new releases are not selling well at all. GM is just as screwed now as they ever have been.
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Wildgoosechase 11:28PM (2/14/2008)
The next move is to shut down factories as the auto fleet becomes aligned with their European and Asian offerings.
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Whitie 4:56AM (2/15/2008)
46,000 retirement eligible workers. Ushering them out the door is the key to keep GM afloat. Amazing that GM can't just tap them on the shoulder and say "see ya"... like every other US company. Having the UAW as a "partner" is a burden like none other.
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Rick 9:46PM (2/17/2008)
It would be a no brainer for me. Take the $140k, put it in a high earning savings account, or in an IRA, whatever, then go back and get a new job with GM at thier lower $30 and hour rate. You'd still have income, and a load of cash earning interest for you. Better than getting fired.
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maxconfus 7:55PM (2/15/2008)
I was recently surprised to hear people like cramer talking about how gm will soon be a non-union company.
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Gardiner Westbound 9:58AM (2/15/2008)
Will the last person out please turn off the lights.
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Gary 5:30PM (3/18/2008)
GM recently sold Allison Transmission in Indianapolis I hope we will receive that buyout option.We are considered layedoff GM employees.
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