| Submit your comments on this article |
| Economy |
| GM aims to cut 21,000 workers |
| 2009-07-26 |
| Hourly workers faced a deadline Friday to accept buyout and early retirement offers from General Motors Co. that could help the automaker thin its work force, cut labor costs and clear the way for hiring lower-paid employees. It was unclear how many accepted deals open to most of GM's 54,000 hourly workers. Results are expected Monday or Tuesday, GM spokeswoman Sherrie Childers Arb said. Accepting a buyout is still risky, particularly in Michigan, where workers face a difficult time finding other jobs or selling their homes so they can seek employment in another state. And though GM emerged from bankruptcy court July 10 after a dramatic restructuring and $50 billion in federal aid, job security is still tenuous, said auto analyst Aaron Bragman of IHS Global Insight "The conditions haven't changed at all," he said. "GM may be out of bankruptcy, but they're not out of the woods. There are still a lot of risks associated with staying. "If conditions don't improve, GM will be back in bankruptcy (court) and liquidating. The bankruptcy is over, but the crisis is not." The retirement offers include $20,000 cash and a $25,000 vehicle voucher. Workers with more than 20 years are eligible for $115,000 in cash and a $25,000 voucher to quit early. Overall, GM said it needs to cut its hourly work force by 21,000 jobs by the end of the year. GM also is slashing salaried ranks by 20 percent and executive employees by almost 35 percent as part of broad restructuring moves. GM started the year with 29,650 white-collar workers and wants to have 23,500 at the end of the year. |
| Posted by:Fred |
| #7 Plow up the parking lots and grow cabbages, I say! Can't do that. It's both profitable and against union rules. |
| Posted by: gorb 2009-07-26 23:39 |
| #6 Perhaps if GM would fire *all* the workers and stop making cars, they could reach profitability. Which is essentially how many corporations were able to report 2nd quarter profits. |
| Posted by: Pappy 2009-07-26 14:36 |
| #5 Perhaps if GM would fire *all* the workers and stop making cars, they could reach profitability. Plow up the parking lots and grow cabbages, I say! |
| Posted by: SteveS 2009-07-26 13:20 |
| #4 This slightly relates to GM, I once worked making airplane piston engines(Continental) we got a new Vice Pres formerly with GM, he didn't know shit about either engines or union, when he finally left he had rebuilt the entire assembly line, and damn near ruined Continental doing it, we used to have a max capacity of 54 complete engines a day, His new machinery couldn't make more than 16, admitted they were damn fine engines, but we now have a far smaller overall output. End result, when I was there stock was selling around 54 bucks, now I can't even find the stock symbol(I suspect Bankruptcy) He left around the time Continental had a huge recall, Crankshafts were Breaking at the front flange (Where the propeller bolts on) something that had NEVER occurred with the old machinery. If he's an example of GM "Leadership" they badly need to flush the whole leadership. from President to Supervisor and hire the first 100 folks off the street, they'd do a far better job. |
| Posted by: Redneck Jim 2009-07-26 13:07 |
| #3 In these situations the first offer is the best. GM will not last till the Volt arrives and it is not clear the Volt could save it if it arrived tomorrow. The smart move is to re-mortgage, accept the offer, move to Costa Rico, mail the keys to the bank. |
| Posted by: Nimble Spemble 2009-07-26 12:57 |
| #2 Reduces a big backlog of inventory they can't sell ... and then they take the full value (not current discounted price) as a tax deduction. |
| Posted by: lotp 2009-07-26 12:49 |
| #1 The retirement offers include $20,000 cash and a $25,000 vehicle voucher. Workers with more than 20 years are eligible for $115,000 in cash and a $25,000 voucher to quit early. Overall, GM said it needs to cut its hourly work force by 21,000 jobs by the end of the year. Sounds more like sweetening the retirement pot than "cutting" workers. Seeing as how it's GM I suppose "workers" should be in quotes too. |
| Posted by: regular joe 2009-07-26 10:51 |