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Originally Posted by steverino
Yeah, GM got raked over the coals, that's what they got.
GM won't see any significant savings until year 2010 at the earliest, what with more buyouts for potentially 24,000 non-assembly workers (to be replaced by 2nd tier $14/hr employees), a slew of temps made permanent, continued heathcare payments at $5+ Billion for 2009 & 2010 and the big VEBA contribution in 2008, lump-sums for the next 4 yrs, increases in pension funding (excluding new hires to 401K's), continued COLA, with portions rolled into base each yr, which increases a $28 base to almost $30 base in 4 yrs.
ANALysts are screaming "show me the savings"
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Sometimes a short term output at high cost is better than a protracted long term output that is of a HIGHER COST.
Analysts will see the savings, and like it. Because many of them (when it comes to pensions and retiree liabilities) will love this contract.