Nearly 19,000 hourly workers take buyout from GM
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."
Get a WordPress.com Blog
Reader Comments (Page 1 of 1)
rouse42 2:38PM (5/29/2008)
so whats this gonna cost the general?
i know there gonna save in the future but those buyouts are not cheap.
Reply
Rick 2:39PM (5/29/2008)
Did any of the useless skin at the top take a cut?
Reply
Soccer Mom 2:57PM (5/29/2008)
What an excellent change to cure GM from UAW cancer.
Reply
kory kickul 3:24PM (5/29/2008)
UAW destroys the big three.......... news at 11:00
Not Detroit 3:07PM (5/29/2008)
Purge the union slugs and replace them with robots. Let Obama or Hillary take care of them. There might be hope for GM yet.
Reply
Soccer Mom 3:21PM (5/29/2008)
You brought up a very good point - lay UAW off and let Obama ride the resentment among them to his presidency. By such simple move GM can aid the U.S. in two ways - plugging that enormous money drain called UAW and electing a president who will run this country in a way beneficial for more than his immediate friends.
Big Rocket 4:45PM (5/29/2008)
Soccer Mom: Isn't Obama supposed to be pro-union, and, by extension, pro-UAW? If that is true, how can you support Obama when you oppose the UAW in the same sentence?
Kaptain75329 2:29PM (5/30/2008)
"...how can you support Obama when you oppose the UAW in the same sentence?" - Big Rocket
The same way every other leftist tries to have it both ways: by feeling. Thinking just gets in the way.
MajorGeek 3:24PM (5/29/2008)
LOL at politics in this thread. Wake up, they all run on money they have to pay back to the people who got them elected and guess what Soccer Mom, it might be you that help him get elected, but he aint going to do anything for you. Look it up as far back as history goes, they all say:
lower taxes - that aint working
health care - you know that aint working
the children - you know kids are dumber then ever with oddly not enough money for sports and after school activities, that aint working.
Stop falling for the politicians promises of "changes" nothing changes including the gullible voter.
Reply
Soccer Mom 3:32PM (5/29/2008)
That is a very subjective and arguable post. If we talk in a greater schema of thing, sure, life goes on as it has for 1000s of years. Focusing on the details, however, there are some differences between Clinton's times and Bush's, for instance.
MajorGeek 4:00PM (5/29/2008)
I can agree with you, there are huge differences but IMHO they never actually improve some major foundations that they run on, rather just toss a bone or two.
LMBVette 4:15PM (5/29/2008)
Check the statistics on who is contributing the most to the current candidates. From what I've been reading, the majority of Obama's money is coming in from single repeat donors in small amounts. I believe most donations are under $100 on his website.
Assuming this is true, this most likely points to the fact that the majority of people supporting him are regular people, not some huge conglomerate. If this is the case...that means he will be working for us.....regular people. I really hope this is true. *fingers crossed*
McCain's supporters are almost all big-business related. Large donations (capped at 1k I believe) from CEOs and lobbying groups. Who do you think he will work for?
I'm not including Clinton in this because she will not be the Democratic nominee.
MajorGeek 4:20PM (5/29/2008)
Im a Republican, not hiding it, they are as crroked as the rest. Its a level playing field of scum. Heres Obamas info, lots of business and "retired" people:
Top 5 Contributors
Goldman Sachs $605,980
University of California $428,116
JPMorgan Chase & Co $403,407
UBS AG $370,130
Citigroup Inc $363,454
Top 5 Industries
Lawyers/Law Firms $17,370,876
Misc Business $13,391,968
Retired $10,167,470
Securities & Investment $8,582,811
Education $6,855,751
OKC05SRT6 10:56AM (5/30/2008)
Obama is a Marxist, anti-American, terrorist sympathizer. He isn't going to "fix" anything.
kpogoda 3:45PM (5/29/2008)
Wow, a voluntary 25% acceptance is unheard of for a buyout. Things must really be bad at GM.
The even alarming piece of news is that 25% of the workforce voluntarily leaving is still not enough that they will get even more aggressive.
Well, I guess that is why their stock price is approaching a 40 year low.
My guess is that GM will very quickly setup shop in an overseas cheaper labor market (China?) and simply ship the cars to US shores for consumption.
Not a good sign nonetheless. My sympathies to those affected towns and workers.
Reply
Tony 9:04PM (5/29/2008)
Hate to tell you this but the U.S is becoming the low cost place to build cars in comparison with the rest of the world ( other than Asia). Why do you think BMW, Audi, Volkswagen, Alfa Romeo and a few others are thinking seriously of opening new U.S auto plants.
Reply
refugee7 9:52PM (5/29/2008)
Well thats because the exchange rate and its cyclical. The market economy is based on upturns and downturns. Can't count on the US being so cheap forever.
wettlaufer 3:41PM (5/30/2008)
The UAW under the old wage contract costs $55 per hour in wages and another $20 in fringes while auto workers in Alabama and South Carolina are being hired at $20 per hour all-in. That's a $1,000+ per vehicle difference in costs, or 5.4 percentage points in EBIT margin. That's the average profit margin for auto OEMs and the companies over which the UAW has a labor supply are not even breakeven in the US. The UAW is overpaid, the white collar ranks at GM, F, and C are underpaid, and the shareholders aren't paid at all. Thanks, UAW.