GM Salaried Cuts To Reach 10k, UAW Drags Heels On Retiree Health Care
Fourteen percent of GM’s global salaried workforce will lose their jobs by the end of the year, reports Automotive News [sub] as the General flails to slash costs. GM’s salaried ranks will drop from 73k to 63k by the time the current cuts are completed. 3,400 of GM’s 29,500 US salaried employees will lose their jobs by May 1, and remaining workers will see their pay cut by between three and ten percent. These cuts will bring GM’s salaried workforce to a lower level than the 65k-67k called for in their initial December 2 viability plan. DId we mention that these fine folks will be losing their jobs without any buyout offers, just as GM slashes its severance pay? Sometimes it doesn’t pay to be a salaryman.
While white-collar employees lose their jobs, the UAW is keeping up its “poor little me” act, claiming to be the “the only party—among bondholders, dealers and suppliers—that has made major concessions to help GM keep its loans,” according to Automotive News [sub]. Try telling that to the Saturn dealers. Or the taxpayers. Anyway, the UAW and bondholders are playing “you first,” both trying to be the last party to make a major concession. And that makes quite the little Gordian Knot. Under the federal loan terms, the UAW must take $26b in pension obligations in the form of GM equity. Shouldn’t be too hard to understand why that’s hard to swallow. That equity isn’t worth anything unless bondholders take the mother of all cramdowns. And prospects aren’t looking good. Also, Gettelfinger figures that for canceling the UAW jobs bank, someone owes his union about $2b. With eight days left before results must be presented to congress, the two groups who hold GM’s fate in their hands don’t seem anywhere close to an agreement.
More by Edward Niedermeyer
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- Redapple2 I love my geolander by yokohama. Wild Peak are almost as good.
- Redapple2 Why is a mexico BYD china car BAD -End of the World! But > gm < Buick Envision good (build more !) ?
- Kwik_Shift_Pro4X Supporting EVs is supporting Chi-nah.
- Eliyahu Oh, a nicer looking 2025 Camry!
- Analoggrotto Sell Canada to Mexico.
Comments
Join the conversation
While Tekken 5 DR Online is the greatest fighter ever, I still have a soft spot in my heart (from where Scorpion's spear hit it) for MK2. As far as the UAW vs. GM bondholders, sit back, crack open a Yuengling, and watch it burn.
I had to come back to this thread because Midway just filed for C11. The only video game publisher, to my knowledge, who filed for C11 and survived was Activision, back in the early '90s. And look at them now...