GM Salaried Cuts To Reach 10k, UAW Drags Heels On Retiree Health Care

gm salaried cuts to reach 10k uaw drags heels on retiree health care

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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  • Morbo Morbo on Feb 11, 2009

    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.

  • Alex Nigro Alex Nigro on Feb 12, 2009

    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...

  • DenverMike When was it ever a mystery? The Fairmont maybe, but only the 4-door "Futura" trim, that was distinctively upscale. The Citation and Volare didn't have competing trims, nor was there a base stripper Maxima at the time, if ever, crank windows, vinyl seats, 2-doors, etc. So it wasn't a "massacre", not even in spirit, just different market segments. It could be that the Maxima was intended to compete with those, but everything coming from Japan at the time had to take it up a notch, if not two.Thanks to the Japanese "voluntary" trade restriction, everything had extra options, if not hard loaded. The restriction limited how many vehicles were shipped, not what they retailed at. So Japanese automakers naturally raised the "price" (or stakes) without raising MSRP. What the dealers charged (gouged) was a different story.Realistically, the Maxima was going up against entry luxury sedans (except Cimarron lol), especially Euro/German, same as the Cressida. It definitely worked in Japanese automaker's favor, not to mention inspiring Lexus, Acura and Infiniti.
  • Ronnie Schreiber Hydrocarbon based fuels have become unreliable? More expensive at the moment but I haven't seen any lines gathering around gas stations lately, have you? I'm old enough to remember actual gasoline shortages in 1973 and 1979 (of course, since then there have been many recoverable oil deposits discovered around the world plus the introduction of fracking). Consumers Power is still supplying me with natural gas. I recently went camping and had no problem buying propane.Texas had grid problems last winter because they replaced fossil fueled power plants with wind and solar, which didn't work in the cold weather. That's the definition of unreliable.I'm an "all of the above" guy when it comes to energy: fossil fuels, hydro, wind (where it makes sense), nuclear (including funding for fusion research), and possibly solar.Environmental activists, it seems to me, have no interest in energy diversity. Based on what's happened in Sri Lanka and the push against agriculture in Europe and Canada, I think it's safe to say that some folks want most of us to live like medieval peasants to save the planet for their own private jets.
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  • MaintenanceCosts There's no mystery anymore about how the Japanese took over the prestige spot in the US mass market (especially on the west coast) when you realize that this thing was up against the likes of the Fairmont, Citation, and Volaré. A massacre.