The Detroit News reports that New GM’s latest buyout offer to its [old] employees has been, as the Brits say, a bit of a damp squib. In fact, New GM wants to cut 21,000 hourly jobs (code: union) this year. So far, just 13,000 have headed for the door. Once again, still, the DetN puts a brave face on the bad news. “The total, announced Monday morning, helps GM cut hourly costs, close the gap in pay with foreign automakers that build vehicles domestically and could clear the way for GM to eventually hire lower-paid workers. Since 2006, about 66,000 U.S. hourly workers have accepted buyouts and early retirements.” Yes, well . . .
The offers were open to most of GM’s 54,000 hourly workers. 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. GM wants to end the year with about 40,500 blue-collar workers.
And by God they will if American taxpayers have to pay for it! I mean, pay more for it. Obviously.
It’s been a year since I was laid off from an outfit that I had worked for for 32 years. I got about 4 weeks severance pay.
Trust me, it was nowhere near $115 large. I’d think there would be a line for that.
As for the voucher, I’d sell it to the 1st person with $15,000 before I’d own a G.M.
Paul
I was under the impression these buyouts aren’t really cash payments from GM as much as they are an advance on your pension. People who take buyouts don’t get pensions or health care anymore, do they?
AG:
I was under the impression these buyouts aren’t really cash payments from GM as much as they are an advance on your pension.
They still got a pension, although it may been reduced since emerging from bankruptcy. Similar deal with the (VEBA) health care.
I’m surprised these buyouts are part of the (post bankruptcy) contract. They have a “no strike” clause.
Maybe GM should try vouchers for cars from other companies.
Since 2006, about 66,000 U.S. hourly workers have accepted buyouts and early retirements… New GM wants to cut 21,000 hourly jobs…The offers were open to most of GM’s 54,000 hourly workers. GM wants to end the year with about 40,500 blue-collar workers.
So GM has cut (is cutting) from 110,000 plus hourly-workers to 40,000 in less than 3 years.
That’s stunning.
They’re going to be in disaray for a couple of years just from that move. 21,00 “permanent lay-offs” are not going to be pretty or cheap either. There’s going to be a lot of discontent and stress among the survivors.
For an HR guy, the problem with buy-outs is that the wrong people usually go. You lose tons of experienced workers who can retire early, but you keep the younger workers who can’t afford to take the chance that they’ll find other work. They’re stuck riding the Titanic to the bottom.
In Canada, the offer for the 30 year employees was too good to walk away from. However for people with kids in school,not so much.
I’ve worked for Delphi for almost 30 years (salaried). If they offered me $100,000+ to walk out the door RIGHT NOW, I’d be gone RIGHT NOW!
Unfortunately, if (more likely “when”) they get around to telling me that my job is gone, I suspect I’ll get nothing. Oh well…
Here’s something from the “Blame The Usual Suspects While Changing Nothing” file.
General Motors Shakes Up HR Leadership
General Motors head of human resources and longtime executive Katy Barclay is stepping down, the automaker said Thursday, July 30. She will be replaced by Mary Barra, a top executive with an engineering background who worked closely with former GM chief executive Rick Wagoner.
The leadership change comes just weeks after the new GM emerged from a structured Chapter 11 bankruptcy with the goal of overhauling the company’s bureaucratic and bloated corporate culture, especially within its executive ranks. The shift completes GM’s executive restructuring, though the company has yet to bring in executives from outside the corporation.
“She is one of the same senior leaders who is responsible for the destruction of the company,” said Rob Kleinbaum, managing director of auto industry consulting firm Rak & Co. “She is responsible for it and should be accountable for it.”
Well…. one of the things that people forget is that HR doesn’t really set the labor policy or the promotional policy or the corporate structure.
Senior leadership does that. If HR objects, they’re seen as obstructionist. If HR cooperates, they’re seen as valueless.
http://www.workforce.com/section/00/article/26/57/72.php?src=wfw090804b
The auto industry has permanently changed, because all new assembly plants in the US will NOT be built in Michigan. All new auto jobs going forward will also NOT be in Michigan. The Wolverine state is finished. Thank you Ron Gettlefinger.