GM: Buyouts Are Back
Automotive News [sub] reports that GM is bringing out its first round of buyouts since emerging from government-structured bankruptcy a year and a half ago. The General is offering skilled trades workers at 13 plants some $60,000 a head to leave the company, as the firm tries to cut down its ranks of skilled trade workers, of which it has “several thousand” too many. Qualifying workers who have already reached retirement age will receive $60k and full benefits, while younger workers will have to give up retiree benefits to qualify for the buyout. The offer is good at 13 GM plants, eight of which are closed, on standby, or scheduled to close, including Orion Assembly, where 40 percent of the recalled workers have been bumped into the UAW’s second tier typically reserved for new hires (or pushed to another factory to piss off yet more workers). GM hasn’t announced how many buyouts it is looking for in the current round, but with nearly half of Orion’s workers alone facing a 50 percent pay cut (and the UAW pushing for buyouts for months now), it seems likely that GM will be able to convince a whole mess of workers to leave their jobs. Especially if there are more “innovative provisions” coming down the pipe.
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I was impressed with the calm, articulate tone of the interviewees, and with the fact that they had not one bad word to say about the company. This situation really proves the cannibalistic nature of the union leadership - it will be interesting to see how votes for those positions will go.
it's about getting rid of anyone with the knowledge and ability to stand up to mgt. GM wants these people gone and is willing to pay big bucks, that and relocate even more offshore. the day will come and fast when our cars will all be made in China, Korea, and India. they can't rip plants and union halls down quick enough.
There's plenty worse than "that thing"... you best lookout for the slick looking stuffed shirt in the corner office. Not only are the slick ones a lot less intelligent than the guy above, they're way more dangerous, even without power tools.
Hi men, I am new here, and would like to ask a question. If union benefits add so much to the cost of a vehicle, why don't non-union-made vehicles sell for measurably less? Second, if GM manages to lower payroll through buyouts and tier-shifting, shouldn't a part of the savings be reflected in the new car pricing? I am a union man (Communications Workers of America) who was forced into early retirement.