GM Cost Cutting Continues: A Buyout Too Far?
By the end of next month, GM will have offered 48k workers a buyout package. How many United Auto Workers' (UAW) members will take the offer is yet to be seen, but the Lansing State Journal thinks it may not be enough. Most workers willing to be coerced bribed enticed to take such a deal did so last year, when 34k union employees left the company. The remaining (and somewhat younger) workers realize they'll have to work somewhere; if they give up their $28/hr jobs they won't be able to find anything close to it in their area. However, unless GM can rid itself of the higher-paid workers and replace them with "noncore" workers willing to accept $14/hr, their nebulous turnaround plan might not work according to [undisclosed] plan. Union officials would only say they were waiting for more details of the buyout before commenting on their evaporating membership's options.
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Catch-22: if the economy does the "R" thing and tanks, the demand for $14/hr jobs will go up. Problem is, who will then buy the cars and trucks?
Of course, bankruptcy will provide another avenue of job cuts.
You got it Frank its an age thing.Living on a fixed income at 54?I'll pass for now,and play wait and see.Its a 70k before tax incentive Canadian$ gamble. A guy has to walk away from 73k year to make 40k on a non garanteed pension.Personaly I'd like to push it out a couple of more years. When you get the other side of 50 you have to make the right moves.You just don't have enough time to fix a mistake.