General Motors announced today that approximately 19,000 hourly employees have opted to leave the automaker's ranks in exchange for a buyout offer and retirement incentives. The offer was extended to 74,000 UAW workers in an attempt to swap out highly paid long-termers with lower-paid new employees as the General realigns its financial situation. Workers have had months to make the decision, but GM is giving them another week to rethink their choice. Employees that have made the final decision will leave no later than July 1, 2008. The effect of nearly 19,000 hourly employees taking buyouts apparently wasn't enough to right the S.S. General Motors as the massive automaker just announced that a new restructuring plan with more buyouts and layoffs is on its way.
[Source: GM]

PRESS RELEASE

Approximately 19,000 GM Hourly Employees Participate In Attrition Program

Program Enables Company to Restructure Workforce

DETROIT, Mich. – General Motors Corp. (NYSE: GM) continued to transform its North American operations by announcing approximately 19,000 of its U.S. hourly employees have decided to take advantage of the company's attrition program. Most of the employees participating in the program will leave the company no later than July 1, 2008.

GM will fill job openings with current employees whenever possible, as spelled out in the provisions of the GM/UAW national labor agreement. In facilities where GM needs new employees, those individuals would be hired in at the entry-level wage and benefit structure. The extent of the new hiring at each facility will be determined on a plant-by-plant basis.

"Despite significant challenges in the U.S. market, we continue to reshape our business for long-term success," said Troy Clarke, Group Vice President and President, GM North America. "This attrition program gives us an opportunity to restructure our U.S. workforce through the entry-level wage and benefit structure for new hourly employees."

Clarke recognized UAW leadership's role in negotiating the 2008 attrition program. "We appreciate the UAW's support in making business improvements that provide a more secure future for General Motors and its employees," he said.

He also recognized employees' role in the continued transformation of GM's business.

"Participation in the attrition program was an important, personal choice for employees and their families," Clarke said. "I want to personally thank those who decided to participate for their many contributions to General Motors. For those who chose to stay, we must continue to work together to build the world's best products for our customers."


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