GM Will Offer Buyouts to 5,200 Additional UAW Factory Workers N...

General Motors Corp., the world's largest automaker, will begin offering buyouts to an additional 5,200 U.S. factory employees in January to create openings for lower-wage workers under its new labor contract.

[Carman]

There are no job openings at a closed facility. No need to hire lower paid workers. OKC is a good example of GM's strategy. Take one of the best assembly plants in North America and shut it down after only 26 years of high quality and profits. In 2001, GM invested $700 million at OKC to build midsize SUV's, obviously indicating confidence in the Oklahoma factories future. Only four years later to shut it down in Sept. 2006. High gas prices were to blame. Bidding for a new product in OKC, the state offered $200 million to retool the plant and the local union offered $143 in annual concessions. No luck to date, yet OKC has lost 2,000 workers, leaving only 250. OKC is a prime candidate for huge potential cost savings by replacing the old workforce, with a new laborforce at half price. No other plant in GM offers such an opportunity for increased profitability. The new UAW contract would allow new hires at $14 per hr., 2 for 1. The question is, will GM take advantage of such an opportunity? OKC is still intact and many of GM's plants are much older and need expensive updates. Why would GM close a newer, more productive and profitable plant like OKC? Go figure? With the weak dollar, building vehicles in the U.S.A. makes more sense than ever.

[Cow herder]

It doesn't make sense for GM to increase 2008 prices on their vehicles while the new hirers are making much less money and offering another round of buyouts to get 5200 hourly workers to leave, who is going to be left to purchase GM vehicles!!? Certainly, the American public isn't going to keep GM and other American auto companies alive in the U.S.
Hasn't the American auto companies done enough damage to the economy in the states that depended heavily on their production!? Look at the economies in Michigan and Ohio not to mention all the foreclosures in those two states!!

[Big Guy]

Cow herder get real! GM's new contract with the UAW has given them a way to run leaner and make a good go of the North American market. With new hires making a combined wages/benefits at 1/3 of the present workers GM is on the right path to profits.

[Walter]

Hey Big Guy; where's the money coming from to buy these vehicles?

New employees will Max out at $15 an hour-that's not a starting wage.

Their healthcare goes into the toilet;$2000 annual deductable for a family. A family of 4 would actually qualify for Medicaid?! That's right! GM wage/benefit plan that puts you on healthcare/welfare! IE;US Taxpayer will pick up A LOT of the GM healtcare tab!!

Run LEAN on the tax doles. Yeah right.

[Big Guy]

Hey Waltie: Gm has 76,000 workers,the American consumer is in the millions. GM will be in much better shape not its workers. Both will run on lean.

[Walter]

GM's been running FAT ever since they started full time production in Mexico and China, paying assembly workers .35-$2.75 an hour, with ZERO pensions and ZERO benefits. Does that sound like GM is running lean? LOL!

Enough of your fear mongering B.S.. Cost of Living continues to rise while wages are going to be cut %50, and healthcare benefits are also cut substantially. Get real.

Detroit is depending on the US customers resenting the Autoworkers for their pay. Now, they'll resent Detroit for it's insistent greed, feeding off the taxpayers, and continue to buy Toyota/Honda at an accelerated rate, like NEVER seen before. LOL!

[Big Guy]

When you pay.35-$2.75 an hour and pay no penision and benefits that's called LEAN. Now their trying to get the U.S. LEAN.
G.M. has been the annual global industry sales leader for 76 years, give them at least a little credit. With new Motor Trend Car of the Year CTS,Detroit Free Press Car of the Year Malibu,and a great lineup of Crossovers. G.M. is on the right path in a tough market.
With the new set of Buyouts G.M. will clear out aprox. 20% of its higher paid workers (they cleared out 21% in 2006)LEAN WALT LEAN !!!!!!!!

[Carman]

I agree Big Guy, the products are much better and priced to be competitive. The Asian companies are making record profits, how does that make people want to support them? They are taking advantage of gulible American consumers Walter! Foreign products aren't any cheaper or better. GM has come along way in the past ten years, with lean manufacturing and world class products and quality. If GM is serious about getting more workers to retire with 25+ years now, offer $2,000 for every year of service. High seniority JOBS Bankers with closed plant status should be given this choice, instead of $67K to transfer. What few are left don't want to transfer and that would save GM money by offering a voluntary buyout option. GM doesn't need high seniority employees to transfer, cheaper to be replace them with a new hire. Many will move for a year to get the $50K the first year and then retire, delaying the benefit of GM hiring new employees at half the wages. If GM got a majority of high seniority people to retire this spring, millions would be saved immediately. GM's restructuring has hit a pothole with the slow economy, delaying expected profits and savings. Mr. Wagoner needs to get Fritz to start writing checks to get rid of those high seniority workers ASAP. Wall Street is getting impatient with delayed results. Offering incentives to move the manpower is the fastest path to a prosperous GM bottom line. Most of these buyouts are funded with the pension surplus snyway. The VEBA savings don't start until 2010. New products don't seem to be adding market share, so the only way to speed up the profitability is to jump start these retirements in a big way. Go for it General and put GM in the fast lane.

[Big Guy]

Carman, Great Insight. I hope Rick and Fritz put it in high gear in January.

[Cow herder]

Big Guy wrote:

Cow herder get real! GM's new contract with the UAW has given them a way to run leaner and make a good go of the North American market. With new hires making a combined wages/benefits at 1/3 of the present workers GM is on the right path to profits.

With the new hirers making almost half what seniored workers make and not even close to the health benefits how are they going to be able to afford to buy GM vehicles? Increasing the cost of vehicles isn't going to make them any more affordable to individuals making $14.00 to $18.00 an hour!!(If you hadn't noticed the cost of living hasn't been going down in this country, just middle class wages and way of life!!)
With all the buyouts of the seniored workers and being newly retired they aren't going to purchase new GM vehicles!!
The American public has been supporting foreign made vehicle companies (that is why the American car companies are having difficulty staying afloat in this country!) So, who exactly is left to support GM and the other American car companies?
Offering lower wages and benefits to new hirers is only a temporary fix for GM and the other American car makers, they will hurt when no one is able to afford their products, then what Big Guy!!?(Plus, I thought the whole idea of cutting wages and benefits for new hirers and establishing the VEBA for retirees with the UAW was to make the vehicles more affordable and in line with foreign car companies, that is not what is happening!!)_

[Big Guy]

G.M. is doing its best to get its North American Operations profitable. It also sold 1 million vehicles in China in 2007. Europe sales are up, too. Cow Herder and Walter do you really think G.M. cares if the new hires can afford to buy a new car? They are only a small part of the world's consumers, and they are helping their bottom line on costs. The BIG PICTURE is what they care about.

[dirty whiteboy]

Cow herder wrote:

<quoted text>
With the new hirers making almost half what seniored workers make and not even close to the health benefits how are they going to be able to afford to buy GM vehicles? Increasing the cost of vehicles isn't going to make them any more affordable to individuals making $14.00 to $18.00 an hour!!(If you hadn't noticed the cost of living hasn't been going down in this country, just middle class wages and way of life!!)
With all the buyouts of the seniored workers and being newly retired they aren't going to purchase new GM vehicles!!
The American public has been supporting foreign made vehicle companies (that is why the American car companies are having difficulty staying afloat in this country!) So, who exactly is left to support GM and the other American car companies?
Offering lower wages and benefits to new hirers is only a temporary fix for GM and the other American car makers, they will hurt when no one is able to afford their products, then what Big Guy!!?(Plus, I thought the whole idea of cutting wages and benefits for new hirers and establishing the VEBA for retirees with the UAW was to make the vehicles more affordable and in line with foreign car companies, that is not what is happening!!)_

they only said that the legacy costs and the benefits package kept the price on their vehicles up to put pressure on the UAW. once the UAW gave in, which earned the company more per car, they raise the price. what will their excuse be now?

[Cow herder]

dirty whiteboy wrote:

<quoted text>
they only said that the legacy costs and the benefits package kept the price on their vehicles up to put pressure on the UAW. once the UAW gave in, which earned the company more per car, they raise the price. what will their excuse be now?

Dirty Whiteboy, that is my whole point, they got the UAW to make concessions to bring down GM's, Ford's and Chrysler's costs of vehicles, but it isn't what is happening!!GM is raising the prices of 2008 models, other companies will follow suit, they say that it is the increase of the cost of some materials like steel..........I don't buy a thing management and the big wigs tells the media.
Now that new hirers make much less than seniored workers how are they going to be able to afford the vehicles that they make!!? We also heard recently that the white collar workers are getting a bonus!! Interesting, how the blue collar workers get screwed and management gets rewarded!!

[Cow herder]

Big Guy wrote:

G.M. is doing its best to get its North American Operations profitable. It also sold 1 million vehicles in China in 2007. Europe sales are up, too. Cow Herder and Walter do you really think G.M. cares if the new hires can afford to buy a new car? They are only a small part of the world's consumers, and they are helping their bottom line on costs. The BIG PICTURE is what they care about.

Big Guy, GM better care what the new hirers do,GM employees are about the only ones that are buying GM products, the American public have exhibited what vehicles they prefer to own for whatever reason and they aren't American made. Eventually, consumers in other parts of the world, too will follow suit with the the majority of Americans.(If it weren't for the auto workers here in this country GM, Ford and Chrysler wouldn't have had the money to invest overseas!!)

[nkasoff]

Make poor quality cars, demand high wages, end up unemployed. It's the American way!

[dirty whiteboy]

Cow herder wrote:

<quoted text>
Dirty Whiteboy, that is my whole point, they got the UAW to make concessions to bring down GM's, Ford's and Chrysler's costs of vehicles, but it isn't what is happening!!GM is raising the prices of 2008 models, other companies will follow suit, they say that it is the increase of the cost of some materials like steel..........I don't buy a thing management and the big wigs tells the media.
Now that new hirers make much less than seniored workers how are they going to be able to afford the vehicles that they make!!? We also heard recently that the white collar workers are getting a bonus!! Interesting, how the blue collar workers get screwed and management gets rewarded!!

sorry "cow herder"; i missed your point about concessions. i didn't mean to repeat what you were saying.
blue collar always gets screwed while the others get bonuses. i remember how they were complaining about paying healthcare for retirees and the execs were concerned about the welfare of the company but yet the execs were getting 10 mil.
i knew when they offered up that two tier plan for delphi that they were going to want to try it there too. hopefully they got enough cash out of the company to fund the VEBA and they invest it right. i'd hate to see everyone screwed.
no matter what they say in all the ads and orientation meetings GM is a corporation and they really don't give a rip about their workers.

[Walter]

Big Guy wrote:

G.M. is doing its best to get its North American Operations profitable. It also sold 1 million vehicles in China in 2007. Europe sales are up, too. Cow Herder and Walter do you really think G.M. cares if the new hires can afford to buy a new car? They are only a small part of the world's consumers, and they are helping their bottom line on costs. The BIG PICTURE is what they care about.

That's right-take a look at the BIG Picture in your own backyard. Imagine the lost tax base from losing just 10,000 of those $28 an hour jobs in Michigan, if/when they are replace with $15 an hour people. Let's see 10,000 jobs X loss of $13 an hour X a 2000 hour work year=$260,000,000 loss of revenue annually. Can the state of Michigan afford to lose that sort of taxable and spendable monies? Can Michigan lose a 1/4 of a billion dollars in gross income? Where are the city, county, and state governments going to get those lost tax dollars from? YOU. That's your backyard, in the big picture, with your piece of the pie getting smaller.(Unless you're the corporate exec scumbag I think you are.)
When production went to Mexico and China did the MASSIVE savings and LEAN costs benefit the consumers. Oh hell no.

[Big Guy]

Waltie and Cowhearder have benn writing only GM employees will be buying GM cars.WRONG---- the facts are GM sold 3,543,167 vehicles Jan.-Nov. in the US. GM has sold over 1 million vehicles in China in 2007. Deny that big boys and I will give you articles. Waltie you are somewhat on the right track on the State of Michigan revenue. But, the new employees(in which they have not been hired yet)will probably get a pay raise from their $8-12 a hour jobs. This will give the State of Michigan more revenue on them but less on the people that retire.So you are somewhat right.You guys really don't get it, it's all about the BIG PICTURE-- Survival. Thats all GM cares about, and they will. New lower cost employees, higher vehicle prices,little retirement cost on Health Care after Jan. 2010. Hopefully GM will improve on quality and get great cars in their future lineup. Bottom line The Big Picture --Survival.Forget about the little things boys GM will.