GM aims to cut 21,000 workers

If you thought quality was iffy before wait until the lower pay workers come online
GM aims to cut 21,000 workers http://tinyurl.com/nmqlx9
Buyout deadline was Friday; results expected next week
Robert Snell / The Detroit News
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.
"All automakers need to get people out the door," Bragman said.
"It's not a matter of reducing headcount, it's turnover."
In the 2007 labor agreements with Detroit's Big Three, the UAW agreed to slash starting wages and benefits for newly hired workers to $14 an hour.
"To take full advantage of the cost benefits of making small cars profitably in the U.S., they need that turnover," Bragman said. "The sooner they can get these people out the door, the better it will be for their bottom line and health."
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If you had 20 years, might want to consider it. Gets a little iffy if you have 18 or 19. But if you had just 4 years, bonus! If I had just under 20 years, I would let them know I would take it if it were the 20 year vested option. See what happens.
GMers want to sharpen the pencil and think laterally out of the box on this one. Could be a bonus in disguise as if GM goes bankrupt again where they will likely get the big shaft, not much if any severance and reduced retirement benefits. Getting the vested out before the money runs out could be a very good idea. I am almost certian GM is now being viewed as a liability going forward with 2010 elections on the horizon.
Mind you, if you are a debt-lover up past your eyeballs in debt, it does limit your options. But still...
And much depends on how flexable and open to change the individual is, this is a bonus to those that can adapt to change. Maybe even hire back at the lower rate and use the cash to wipe out the mortgage.
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But, but, but the new GM is debt free since coming out of bandruptsy. LOL

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Duh! Any company coming out of bankruptcy court can still have certain debts, but they are manageable debts that can be annualized, like you having a mortgages that is more than covered by you annual income, dummy

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