GM Suspends [Some] Employee Benefits

Robert Farago
by Robert Farago
gm suspends some employee benefits

Cost-cutting carnage continues at the artist formerly known as the world’s largest automaker. The Detroit News reports that GM spinmeister Tom Wilkinson has announced that his employer is “temporarily suspending company matching of its 401(k) program as of Nov. 1.” Also gone by the end of ’09: tuition reimbursement and adoption assistance programs. (Tommy is a good boy who loves working at GM. Won’t you open your heart and help find him a home?) Meanwhile, the DetN is doing what it can to help, claiming the moves arrive as GM “navigates the downturn in the auto industry.” (As a group of non-romantic viewers chanted during the first half of the movie Titanic, “Ice berg. Ice berg.”) Oh, and Tommy said the automaker’s buyout program for salaried employees has been “well-received,” though he refused to reveal the number of workers who accepted the offer. So how about an update on the jobs bank, then? No? Never mind.

Join the conversation
4 of 22 comments
  • 50merc 50merc on Oct 23, 2008

    The picture caption says Christy Hemme won't be appearing on TNA for a while. What's TNA -- an acronym for Tits 'n' Ass? Mikey, when GM cuts management pay to Toyota levels, we'll know the Board is truly concerned about and has decided to take responsibility for the company's fate. And truthbetold37, I realize that the loss of tuition reimbursement is a significant issue for those below the executive level. But frankly, that should have been done a couple of years ago. GM is suffering two-severed-arteries hemorrhaging of cash. Book value (assets minus liabilities) has been ZERO for some time. It's long past the time for drastic measures.

  • Sitting@home Sitting@home on Oct 23, 2008
    If I were a majority stakeholder in GM, I would be asking some very hard questions about value for my dollar. of course, GM’s board includes luminaries like George Fisher, who more or less presided over Kodak’s implosion. But the majority of [s]gamblers[/s] investors in GM are overpaid stock analysts working for commission sapping pension funds managers etc. They're all well overpaid for what they do (which when it comes down to it is nothing useful), and have just been given an open government ATM card while simultaneously trashing our 401k's. It's us worker ants paying 40% of our wages to Uncle Sam and another 10% to Fidelity and co. who always inevitably get trodden on.
  • Gardiner Westbound Gardiner Westbound on Oct 23, 2008

    "The beatings will continue until morale improves."

  • Von Von on Oct 23, 2008

    She would make a better employee benefits program, at least the pain will feel good!