By on February 10, 2009

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.

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24 Comments on “GM Salaried Cuts To Reach 10k, UAW Drags Heels On Retiree Health Care...”


  • avatar
    gamper

    I was just reading a CNBC article on the subject which says that GM salary workers will get severance pay and benefit assistance.

    “Salaried workers in the United States whose jobs are eliminated will be eligible for severance pay and some benefit assistance, GM said. “

  • avatar
    Gardiner Westbound

    Notwithstanding UAW posturing, being fired with state required termination pay only is a “major concession”.

  • avatar

    Mortal Kombat truly fell the hell off when it went 3D back in 1997, although the DC Comics crossover is apparently making the series good again.

    Hell MK publisher Midway Games is in GM-like worlds of trouble. They last had a profitable quarter in 2004, majority owner Sumner Redstone sold the company off to some investor for $100,000, and the sale triggered some bond repayments that have to be paid off in a week or so.

    Of course, Midway also made some GM-like stupid decisions, too- they closed their arcade and pinball divisions in 2000 and 1999, respectively. They went down the drain slowly thereafter. Think about it…

  • avatar
    KatiePuckrik

    Imagine being told, given this economic climate, that you’ve lost your job, in a depressed industry (i.e cars). Now throw into the mix, that you WON’T get a pay out for being made redundant.

    That’s harsh!

    When I got made redundant, I got a 5 figure payoff and walked straight into another job (hence, the payoff was a nice little bonus), so I feel for these 10000 workers.

    But, we mustn’t lose sight of the fact that GM needs to make cuts in order to survive. It does smack of “panic-job-cutting-in-order-to-satisfy-the-government”, but no matter what the circumstances, they needed to be done.

    The only question is will is be enough….?

    P.S. I was unstoppable with “Raiden”.

  • avatar
    Stingray

    Why can it be simply called FIRED?

    That’s it, they’ll fire a lot of people.

  • avatar

    KatiePuckrik,

    I’m more of a Virtua Fighter/Soulcalibur guy. Doesn’t mean I’m a tournament-player, but I’m reasonably good with Aoi and Seong Mi-na, or however the hell Namco’s pronouncing her name nowadays.

    Getting back to the topic at hand, maybe this could be a warning from GM that they mean Serious Business when it comes to getting more bailout bucks?

  • avatar
    GS650G

    Millions lost their jobs the past 12 months, and they are not buying anything new that is for sure.

  • avatar
    KatiePuckrik

    Ferrarimanf355,

    I’m more of a Street Fighter 3 kind of person. I’m brilliant with “Ibuki”.

    Back to topic. if GM are trying to show they’re serious about getting more bailout dosh, then, they better not over play their hand.

    The only reason that the government “loaned” them the money, is to preserve jobs in the US. If GM carry on slashing jobs, then the government may wonder why they should put more money into GM, if there is next door to naff all jobs to preserve.

    If GM want to slash jobs and get more bailout dollars, then, GM should box clever and work out how to transfer production back to the US and export to markets. That way, the government can see some value to keeping GM alive.

    For instance, GM kill the Swedish, UK and Spanish plants, transfer production to the US and export cars to Europe. That way, the government will want to keep GM alive as they are helping export goods from the US and employing US workers to do it.

  • avatar
    psarhjinian

    And that makes quite the little Gordian knot

    You know what they do to fix Gordian knots, right?

  • avatar
    snafu

    “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”.

    Historically, looking at UAW contract negations and the duration of time it takes to reach an agreement, this could be a loooong sit in. It’s no different now, another day in the life.

  • avatar
    billc83

    Ahh, the old Shang Tsung Kintaro fatality. Hold “Low Punch” for 30 seconds during the round. Gratuitous violence FTW!

    IMHO, Mortal Kombat jumped the shark after MK2. I didn’t care for MK3. Trilogy, in an odd parallel to GM, had too many characters with similar selling points (Human Smoke was the Pontiac equivelent to Scorpion’s Buick).

    And Scorpion was my favorite. Flawless Victory!

    Way off topic, I know…

  • avatar
    AndrewDederer

    KatiePuckrik:

    They will get some sort of severance. GM just reduced the amount. I think they were at 2 weeks pay per year with the company (that’s quite good). They’re probably capping it at 4 months or so.

    Generally they keep paying you (which keeps you on medical) until the severence term expires. At which point you can claim unemployment for the balance of 6-12 months (I think it’s been extended). Unemployment is only about 50-60% of base pay, so it’s better than nothing but quite a come-down. Much harder on those GM people will be selling their house if they have to move to take a new job (probably will). The house market is down, especially up that way.

  • avatar
    highrpm

    I read, in the Detroit Free Press or on this site, that the GM severance package will be caped at six months’ salary as of March 1.

  • avatar
    Saracen

    2D Fighting games > 3D Fighting games

    With the Street Fighter Alpha series being the all time best. But MK2 was a bloody good time!

  • avatar
    ZoomZoom

    I am not a video game player.

    But I did notice that the loser’s name in that pic is “Baraka”. That’s gotta hurt.

  • avatar
    rochskier

    Saracen:

    Street Fighter Alpha was excellent for its emphasis on precise, technical fighting, but for pure fun factor Street Fighter 3: Third Strike cannot be topped.

  • avatar
    John Williams

    (Human Smoke was the Pontiac equivelent to Scorpion’s Buick).

    Wow. That’s a pretty good analogy, especially since MK3 had too many characters that pretty much did the same thing in different skins (in both human and cyborg form).

    The MK franchise fell off the wagon as soon as it went 3D.

  • avatar

    Wow. That’s a pretty good analogy, especially since MK3 had too many characters that pretty much did the same thing in different skins (in both human and cyborg form).

    The various Ryu/Ken clones in Street Fighter would make a better comparison. Except Dan. Dan’s cool.

  • avatar
    yankinwaoz

    I was reading some news about Obama’s choice for labor secretary. And I think it may give him a way to force bankruptcy and still garner some favor with the UAW.

    Besides the sorry shape of the D.28, the biggest problem the UAW and other labor unions face is declining membership. The UAW knows GM is toast. So what they want is a new host…. transplant assembly factories!

    In order to get the union into Toyota, Honda, and BMW plants, they need the change the rules. That is why they are pushing hard for the union voting rules. They want to outlaw secret voting and require each employee to state their vote. They think with this they can intimidate the “No’s” to “Yes” and carry the vote.

    So, how about this scenario? They let GM and Chrysler file BK. The UAW contract is torn up. But, the workers get the new voting rules in place, and the members get to take over new factories.

    My God, it works just like a virus that destroys its host and then explodes in order to find a new host to infect.

  • avatar

    I, too, have to wonder if the execs at the transplants are being kept awake a night over this…

  • avatar
    Jimal

    I’ve detailed my father’s plight (salary GM who retired in 1992, has had his benefits cut on an almost annual basis, no healthcare as of this year) so you’ll have to excuse me if I don’t shed a tear when the UAW finally loses the big game of chicken and augers itself into the ground. Hard to pay union dues with unemployment.

  • avatar
    kaleun

    So, one goes to grad school to make as much money as a UAW assembly worker with high school degree (if at all), that education makes the job less secure, and the dems don’t feel sorry for you because someone with an education is eleite anyway who gets everything handed to them.

    and you wonder why kids nowadays don’t want to study hard….

  • avatar
    morbo

    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.

  • avatar

    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…

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