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

Edward Niedermeyer
by Edward Niedermeyer

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.

Edward Niedermeyer
Edward Niedermeyer

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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...

  • MaintenanceCosts People who don't use the parking brake when they walk away from the car deserve to have the car roll into a river.
  • 3-On-The-Tree I’m sure they are good vehicles but you can’t base that on who is buying them. Land Rovers, Bentley’ are bought by Robin Leaches’s “The Rich and Famous” but they have terrible reliability.
  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
  • Analoggrotto NoooooooO!
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