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GM to shed further 18,657 workers through buyouts

 
6 813 views Jun 19, 2008

GM to shed further 18,657 workers through buyouts

GM to shed further 18,657 workers through buyouts

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Update: GM has confirmed that an additional 18,657 employees will be cut from its workforce through the use of buyouts and retirement incentives, and about half of these will be from its Michigan facilities. While GM isn’t expected to replace all of the workers who leave, some openings will be filled with new employees hired in accordance with the national agreement signed with the UAW late last year. The company also expects to replace some workers under a clause in the contract that allows GM to pay new hires into non-core jobs a lower wage and benefits package.

Original: Just hours after reports that GM was working on a new restructuring plan, management have announced that about 19,000 hourly employees have taken the latest round of buyouts so far this year. The remaining employees will fill the openings left by the reduced workforce and new employees will be hired in accordance with the national agreement signed with the UAW late last year.

The acceptance rate for the cost-cutting program was lower than a similar offer GM made in 2006 for its union workers but management is happy with the take up, reports Automotive News.

"Despite significant challenges in the U.S. market, we continue to reshape our business for long-term success," Troy Clarke, president of GM North America, said in a statement. "This attrition program gives us an opportunity to restructure our U.S. work force through the entry-level wage and benefit structure for new hourly employees."

The latest announcement coincides with news that UAW Local 1112 in Lordstown, Ohio, has reached an agreement a new agreement with GM. The Lordstown plant is responsible for the Pontiac G5 (pictured) but is not included in GM's list of the 19 plants still stopped or slowed after the three-month-long UAW strike against American Axle.



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Comments (6)

  1. By bc Posted: 5/29/2008 7:00pm PDT

    At least GM designed a Cadillac that can kick butt at Nurburgring! But, its too expensive and no one wants to buy it (sigh)... oh but wait they have been working on a new electric car.... since the 70's (Electrovair II).
     
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  2. By chris Posted: 5/30/2008 7:52am PDT

    bc; see the recent article about cadillac. the CTS sells. well. and that CTS-V will sell well also. the difference now with the volt is that there's a serious market out there that will actually buy this car.

    19,000 workers is the equivalent of about 8 average sized plants. it's just incredible the amount of jobs that are just being slashed. and just think,.. the dealers will feel it too and fire more people, and all of these people will go on pogey and stress an already stressed government and economy.. it's just ridiculous. I blame the import drivers. (I'm joking.. mostly).

    Maybe the USA shouldn't have spent 2 trillion dollars in iraq. thats $6,666 for every american. how about that for a stimulus cheque?
     
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  3. By Stephen Posted: 6/19/2008 9:02pm PDT

    Oh good! Less American jobs and more shoddy build quality. THANKS GM!
     
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  4. By burke Posted: 6/20/2008 8:48am PDT

    Guys, there is just one problem, gas prices are going up, and there is no sign they will come back down any time soon. Gas prices have brought a new challenge to humanity: Change technology to produce alternative sources of energy. Unfortunately, those changes can not happen overnight. Changes in technology will necessarily terminate jobs, but they will create new ones. Like usual, those with more capabilities to adapt to the new demands, will survive; and that dosn't apply to workers only but managers and CEO's as well. If I were to blame anybody or anything for the crisis that is happening today, I would blame the industrial military complex, which has always been big business. I would say that 99.995% of all the efforts in technology for the last century or so was created to satisfy a tactic or strategic military goal. Later, that technology was inherited or adapted to civilian life when it became obsolete. The general goal was to achieve "power" at all costs, with little regard to environmental concerns, etc. Power mentality brought "big" along: -Big everything-Part of that power mentality was also taken to transportation industry: Big cars, trucks, boats, etc. "Power" mentality made sense while the price of gas was cents per galon, but not anymore....And for the invasion or foreign imports in all areas I should blame mediocrity in American production, because big and powerful is not always efficient and reliable :-)
     
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  5. By Tim Posted: 6/20/2008 1:28pm PDT

    I think the biggest problem is the oil price, that’s for sure. But it seems like even when GM, Ford and Chrysler knew that the import car companies thrashed them in quality they still built vehicles big and bigger with no response to quality. Which inter isn’t going help them gain profit sales. I think the only way the big three can help them self and the economy is to come out with the best electric or hydrogen fuel vehicles better then the imports. Even though I wasn’t a big fan of the domestic cars back in the day and prefer to buy Honda or Toyota instead, I would have rather driven a worthless American car if that mean people can keep there jobs. And on the last note North American should only let foreign companies sell cars only if it is built in America.
     
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  6. By Ultra Posted: 6/20/2008 10:02pm PDT

    Well its like they said.. Gas prices are record high and Gas company profits are also record high. So it means that they are selling gas expensive not because they have to but because they can ... Thats were the GAS tax comes in But stupid republicans dont understand that .What will companies do when everyone drives electric cars " that what I want to see.

    Another problem is that Americans buy to many import cars , thats also GM's fault because most GM cars are UGLY ! wich is a big buying factor for most ppl
     
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