By Frank Williams
July 28, 2008
After accusations of "betrayal," blockades by the Canadian Autoworkers union, threats of lawsuits against the union and sops tossed to the union, GM is moving ahead with plans to close their truck plant in Oshawa, Ontario. However, it looks like it'll cost them a bit more than they'd anticipated. The Globe and Mail reports GM and the CAW have struck a deal whereby GM will add another model to the mix produced at the auto assembly plant there. Oh, and pay some workers for four years after the plant closes. The complete details of the deal will be announced to workers later today, but it includes paychecks for laid-off workers with 26 years seniority for four more years at 65 percent of their current wages. That makes them eligible for "a special retirement incentive applicable to people with 30 years of experience." Workers with 27 to 30 years would also be paid until they reach the 30-year mark. In return, GM gets to keep building cars in the most expensive location in North America. Such a deal!
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POWERED
July 28th, 2008 at 9:12 am
After reading this, is there any doubt about GM surviving? Bribing employees … wages for an extra 4 years… to not have to work! I don’t think I have ever seen such collusion between management and the union on such a large scale as with GM and its’ unions. And to think that the Board would let management throw away the shareholders money with such abandon. Being a shareholder of GM is like being a masochist. Just wanting to be badly treated for owning the stock.
July 28th, 2008 at 9:25 am
Welcome to the world of Generous Motors.
July 28th, 2008 at 9:37 am
These
suicidal decisionscommitments might be tossed out the windowas part of the inevitableif there is a BK filing.July 28th, 2008 at 9:39 am
That’s staggering. To continue to be paid for 4 years after you’ve lost your job is ridiculous. Sure it’s great for the worker, but no business can survive nor expect to be competitive with such policies. Oops, I forgot, we’re talking about GM here.
July 28th, 2008 at 9:45 am
One can’t help but wonder if GM has an ace up their sleeve. For example, knowing that a BK will void this commitment.
July 28th, 2008 at 9:50 am
GM must be planing to file. When they do, this deal is out the nearest window. By then Buzz will have retired having left with everything in good shape. His replacement will be left with the mess but Buzz’s ‘legacy’ will be clean. GM workers don’t only have to contend with deception from management but from their Union bosses as well.
July 28th, 2008 at 10:00 am
If I was GM I would have just offered them 2 free trucks they build for each year until thier 30 years is up. They could just sell em keep em,, wonder if the workers who build em would go for that.
July 28th, 2008 at 10:55 am
What an ignominous end to one of the best-quality plants on the continent.
July 28th, 2008 at 11:50 am
Can anyone give me the justification of a union member to receiving 4 years of payments after their job is eliminated?
July 28th, 2008 at 11:52 am
4 years paycheck = working man’s golden parachute. Heck of a buyout program of what – a quarter million dollars per employee? That ought to pay off their mortgages!
Maybe GM knows they won’t exist to pay those paychecks b/c they will have filed for bankruptcy before then. Wouldn’t that get GM off the hook?
The amount of money flying around the car industry is amazing.
July 28th, 2008 at 1:25 pm
Here’s the facts: #1 Truck plant starts winding down Sept 08 to closing July 09.
#2 All hourly employees are eligible for something
It starts at 37,500$ + 35000 car, to 120,000 and 35000 car for 30yr skilled trades.Everything is taxable.
#3 26 yr employees get 65% of gross pay,then its taxed.When you get to 30 years,its 50,000$ plus the car,and your on a 30yr retirement pension.
Yes it sounds like a good package.I will be shocke if we get more that a thousand takers 700 maybe
These 2600 high paying jobs are gone,never to return.
July 28th, 2008 at 1:31 pm
This is in effect simply an extension of GM’s previous buyout offer of those workers at that plant.
July 28th, 2008 at 2:07 pm
To some degree Sherman lin your correct.This time though its open to anybody with no preset limits.
July 29th, 2008 at 8:30 pm
This sums up the reason that I will never buy a GM product at any price. A company of losers from top to bottom.