GM Buyouts, Pt. 2: New UAW Contract Saves $2.1b P.a.
Last February, GM offered buyouts to all 74k of its remaining US hourly workers. We now know Some 19k GM union members are so out of here. J.P. Morgan analyst Himanushu Patel predicts GM won't replace up to 15k of the departing union members, for total annual savings of $2.1 billion. For mortals, $2.1B is big bucks. But for cash-burning GM 'tis nuth'n. For years now, GM has been reporting record-setting cost reductions and record-setting losses. Talk about saving your way to nothing! The boogiemen on Wall Street bid the stock to a 26-year low of $17.38 at yesterday's bell. AP reports via Yahoo! Business that the General is thinking about moving workers off the truck assembly lines and onto building the cars which are actually selling. GM eliminated shifts at two truck plants in Michigan. Laid-off workers could be moved to a car assembly factory in nearby Orion Township, where GM is negotiating with the UAW to add a third shift. Negotiations? "We haven't got anything final," says Mike Dunn, bargaining chairman of UAW Local 5960. "We're always looking to bring work in. We're hoping before the year's out that we can accomplish this goal." Hey, what's the rush?
More by John Horner
Comments
Join the conversation
Brilliant! a company that has to pay their employees to leave and has to pay their dealers to shut down. Where can I sign up to invest in this company?
GM/UAW processes is a snapshot of how things are done in the country today. Short of oil and gasoline? Let's do absolutely nothing about it buy make pie-in-the-sky promises about how some future painless technology will solve everything painlessly. If you think the UAW is bad, try dealing with the EPA, Bureau of Worker's Compensation, etc. We are being lapped by other countries while we choke on regulation and socialism.
How much would the truck in the picture cost with a modern drivetrain? Would prob perform just fine with a 200HP V-6 b/c the truck doesn't weigh that much... And yes, I've worked on alot of the 30s and 40s vehicles so I am aware of the safety issues like: in cab gas tanks - move it out back between the rails steering column spears - add U-joints brakes - upgrade to discs add rust proofing, sound proofing, and refine the materials used through the truck JUST A LITTLE and then sell it to me for $10K.