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?