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...

  • 285exp I am quite sure that it is a complete coincidence that they have announced a $7k price increase the same week that the current administration has passed legislation extending the $7k tax credit that was set to expire. Yep, not at all related.
  • Syke Is it possible to switch the pure EV drive on and off? Given the wonderful throttle response of an EV, I could see the desirability of this for a serious off-roader. Run straight ICE to get to your off-roading site, switch over the EV drive during the off-road section, then back to ICE for the road trip back home.
  • ToolGuy Historical Perspective Moment:• First-gen Bronco debuted in MY1966• OJ Simpson Bronco chase was in 1994• 1966 to 1994 = 28 years• 1994 to now = 28 yearsFeel old yet?
  • Ronnie Schreiber From where is all that electricity needed to power an EV transportation system going to come? Ironically, the only EV evangelist that I know of who even mentions the fragile nature of our electrical grid is Elon Musk. None of the politicians pushing EVs go anywhere near it, well, unless they are advocating for unreliable renewables like wind and solar.
  • FreedMike I just don’t see the market here - I think about 1.2% of Jeep drivers are going to be sold on the fuel cost savings here. And the fuel cost savings are pretty minimal, per the EPA: fuel costs for this vehicle are $2200 and $2750 for the equivalent base turbo-four model. I don’t get it.