GM is struggling with costs in the wake of historically poor automotive sales, and the Detroit automaker is offering more UAW buyouts to trim its blue-collar workforce. The incentive package includes $20,000 in cash and another $25,000 in car voucher form. GM is also looking for workers over the age of 50 with ten or more years of service to take an early retirement. Details of that plan are not yet available as the rank and file have not been officially notified, but GM's buyout package is reportedly the same whether employees leave before they're eligible for retirement or not.

The GM buyout offer is reported to be significantly lower than the offer given by cross-town rival Chrysler. Chrysler is giving $50,000 and a $25,000 voucher to eligible workers. Employees not up for retirement will receive $75,000 in green-backs and a $25,000 voucher.

The buyouts will allow Chrysler and GM to lower fixed labor costs, and when (if?) times get better, new hires will receive a far lower wage with less extravagant benefits. With the death of the jobs bank and a rash of recent shift reductions, there is a strong chance for a high take rate of buyouts.

[Source: Bloomberg | Photo: Getty/Pool]

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