GM Wants 74,000 UAW Workers Gone!

GM Wants 74,000 UAW Workers Gone!

Posted in the Autos Forum

Truckin

United States

#1 Feb 12, 2008
So much for GM being the benchmark for wages and benefits in the U.S.

DETROIT (Reuters)-- General Motors will offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the UAW in a sweeping deal with the union intended to clear the way for GM to hire lower-cost replacements.

The cost-saving agreement follows on a program launched in January for about 5,200 workers at GM's service parts and operations facilities across the United States and five other facilities, and comes with better terms than GM offered to UAW workers in 2006.
Truckin

United States

#2 Feb 12, 2008
GM executives have said the automaker will take advantage of a ground-breaking contract provision that will allow the automaker to hire workers at second-tier wages, but they have declined to say how many of the current workers who take the offers will be replaced.

GM said it would offer better terms and more choices for its already-retirement-eligible UAW workers, including increasing payouts to $45,000 for production workers and $62,500 for skilled trades workers.

The automaker had offered $35,000 cash across the board in 2006 for its retirement-eligible workers, but Ford and Chrysler recently increased their retirement incentives for hourly workers and the U.S. economy has weakened since 2006.

Workers may choose a lump-sum payment, an annuity, or roll part or all of it into an individual retirement account or a 401K to postpone the tax hit and potentially make the offer worth much more than those on offer for UAW workers at Ford.

GM factory workers who retire after 30 years currently have pensions of about $3,100 per month, plus health benefits.

The company also has lowered the eligibility for an enhanced retirement program for workers with 26 years experience who will be allowed to take what amounts to a reduced pension for four years before entering full retirement.

GM workers who are over 50 with at least 10 years experience may retire with reduced pensions, plus benefits.

UAW workers with more than 10 years experience also could opt for a $140,000 lump-sum buyout to leave with only their accrued pensions, or $70,000 if they have less than 10 years.

“Assignment change”

Since: Jul 07

Yonkers, NY

#3 Feb 12, 2008
yep, that $60 bucks a month and no health care looks real good right now! China here they come....

70plyRR

Since: Aug 07

Trumbull CT

#4 Feb 12, 2008
Please..
Surely a couple of true auto enthusiasts like you (one a honda man), one a self proclaimed “insider” knew about this before hand? Can anyone say downsizing and restructuring? You know, that plan that was outlined after the big 06 loss? No wait I know, both of you knew about it before hand and wanted to sit back and wait until the “big” press release as to conclude another half hearted failure of an attempt to exhibit more “insider” auto news (again).

I do like the big use of multiple exclamation points, very tactful.

I imagine we can get few more posts with hmm lets say multipe periods, or maybe questions marks lol.

!!!- nice

70plyRR

Since: Aug 07

Trumbull CT

#5 Feb 12, 2008
Off topic-

We will be visiting the local Japanese steakhouse tonight. Looking forward to some of that authentic Japanese cuisine. Can someone say teppanyaki.. data trucking, toyota? I will report back on the experience. If there’s one thing I will give credit to the japs are the abilities at the table. I love that surf and turf.

“Assignment change”

Since: Jul 07

Yonkers, NY

#6 Feb 12, 2008
70plyRR wrote:
Off topic-
We will be visiting the local Japanese steakhouse tonight. Looking forward to some of that authentic Japanese cuisine. Can someone say teppanyaki.. data trucking, toyota? I will report back on the experience. If there’s one thing I will give credit to the japs are the abilities at the table. I love that surf and turf.
Have fun, stop in at a Honda dealer on your way home and see if they have a Mugen Civic Si for you to try out...remember it dont hurt to rev in the 9000 range in a Honda K motor!
Ford only

Philadelphia, PA

#7 Feb 12, 2008
Truckin wrote:
So much for GM being the benchmark for wages and benefits in the U.S.
DETROIT (Reuters)-- General Motors will offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the UAW in a sweeping deal with the union intended to clear the way for GM to hire lower-cost replacements.
The cost-saving agreement follows on a program launched in January for about 5,200 workers at GM's service parts and operations facilities across the United States and five other facilities, and comes with better terms than GM offered to UAW workers in 2006.
Just think you sell out Toyota f-git. Gm is buying out 74,000 employees, hell that is more employess than Toyota, Honda and any other jap crap that builds cars in the US. Gm will still employ more than your little dink company. So keep dogging your county you little girl..
Ford only

Philadelphia, PA

#8 Feb 12, 2008
What is the big deal here??. Gm is getting rid of some of the dead weight. These people are on their way out anyway and are probably happy to get a buyout. GM is going to rehire new younger workers at a lower wager. You never hear about this from Toyota becasue half or more of the cars and sissy trucks are imported and out of the 5,000 or so employees that Toyota hires are half are temps. When the tough gets going at Toyota, they just give the temp workers a pink slip and send them packing. F-ck Toyota and the people who buy them..

Since: Apr 07

ridgefarm Il

#9 Feb 12, 2008
Interesing comments. I wonder if GM will replace these employees with some here, or move more plants to mexico. The UAW sure is an anchor dragging GM down, that is for sure. And their 38 billion dollar 07 loss is amazing. It will be interesting to see the results of this. I am hoping it pushes GM to come out with better cars and trucks.

“Assignment change”

Since: Jul 07

Yonkers, NY

#10 Feb 12, 2008
Tom Loy wrote:
Interesing comments. I wonder if GM will replace these employees with some here, or move more plants to mexico. The UAW sure is an anchor dragging GM down, that is for sure. And their 38 billion dollar 07 loss is amazing. It will be interesting to see the results of this. I am hoping it pushes GM to come out with better cars and trucks.
Not Mexico, China, they have to pay back that $50 Billion they gave GM...

“Assignment change”

Since: Jul 07

Yonkers, NY

#11 Feb 12, 2008
Ford only wrote:
What is the big deal here??. Gm is getting rid of some of the dead weight. These people are on their way out anyway and are probably happy to get a buyout. GM is going to rehire new younger workers at a lower wager. You never hear about this from Toyota becasue half or more of the cars and sissy trucks are imported and out of the 5,000 or so employees that Toyota hires are half are temps. When the tough gets going at Toyota, they just give the temp workers a pink slip and send them packing. F-ck Toyota and the people who buy them..
the way you type, your name Tom?
Truckin

United States

#13 Feb 13, 2008
The interesting part is that once GM "buys out" some of these employees they just become retirees and they are still burden to GM. The net effect is basically ZERO. They pay the retiree a lump some to go away (golden parachute) and then $3100/month plus health benefits to enter the retiree ranks. They then must turn around and hire a dirtbag off the street for $14/hr and give him benefits and a union card.

They get a younger dirtbag to come to work (hopefully) and the result is an unskilled worker who don't care much because he's only making $14/hr while the old codger next to him doing the same job makes $28/hr.

70plyRR

Since: Aug 07

Trumbull CT

#14 Feb 13, 2008
Truckin wrote:
The interesting part is that once GM "buys out" some of these employees they just become retirees and they are still burden to GM. The net effect is basically ZERO. They pay the retiree a lump some to go away (golden parachute) and then $3100/month plus health benefits to enter the retiree ranks. They then must turn around and hire a dirtbag off the street for $14/hr and give him benefits and a union card.
They get a younger dirtbag to come to work (hopefully) and the result is an unskilled worker who don't care much because he's only making $14/hr while the old codger next to him doing the same job makes $28/hr.
Incorrect (again), Mr. Insider. You need to do the research before you start posting up such rubbish. If I were you I would be searching for an alternate magazine subscription other than Auto News.

Only workers at “30 and out” will be a close match to qualify as a “burden.” Others will definitely be a positive for the company. Production will get 45K and skilled will get 62.5K, this is a huge difference than calculating another 10-20 yearly wages.

26 to 29 years = early out with reduced pay, still eligible for retirement at 30 and out.

A 50 year old with 10 years in will get early retirement with accumulated pension and benefits.

10 years of service will get 140K to walk.(Most of these are younger employees) they can still work in a mew environment.

Less than 10 will get a 70K payment.(See above for next game plan)

Now, according to the contract, GM can replace 16K workers with temps, not too shabby. This is the method to allow for temps to come in (a must do). Temps will make half the wage (around 14/hr.) and offer a younger worker with a positive “can do” attitude.

Further – According to the new contract, GM is no longer responsible for retiree health benefits. The UAW has received a 35 billion appreciating trust and has to manage it. This covers 80 years of benefits. This equals a net profit (to GM) of 50 billion. Now tell me how many of the buyout individuals will live another 80 yrs?

Furthermore – Don’t forget, annual pay raises were nixed in the new contract.

Trucking + Auto News = fuzzy math
nothing more than an attempt to get a headline. Hell, just look at his posts, 95% deal with negative, anti-big three rhetoric. Can anyone say agenda? Wow, just wow.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Autos Discussions

Title Updated Last By Comments
News Chevy Volt leapfrogs Toyota's Prius (Nov '10) 16 hr Root 11,778
bmw icom next a+b+c 2016 new generation of icom a2 Fri yellowbend 1
OP-COM 2012V/ VAUX-COM 120309a Free Download (Oct '15) Thu lalaura 18
News 2017 Ford Fusion Hybrid and Energi Quick Spin May 26 Solarman 1
RAC Warranty at North West Autos Blackburn Review (Feb '15) May 26 David houldsworth 11
XTOOL iOBD2 Mini OBD2 EOBD Scanner May 25 lalaura 11
News Americans are more overweight than ever, CDC su... May 25 TimeforHonesty 10
More from around the web