DetNews: GM fires 500 engineers

[SobeSVT]

GM fires 500 engineers
The loss of contract jobs darkens grim Mich. outlook

Christine Tierney / The Detroit News

General Motors Corp. will lay off about 500 contract employees, many of them engineers and designers at its technical center in Warren, on Friday as part of the automaker's effort to downsize its money-losing North American operations.
"This is a very challenging time, and these are very difficult decisions for the company," said GM spokesman Robert Herta. "It's all about aligning the work force with our business needs."
GM said the cuts are part of a previously announced plan to reduce its U.S. white collar work force by 7 percent in 2006. The reduction affects both direct GM and contract employees.
Many of the engineers whose jobs are being eliminated have already been contacted by the contractors that employ them.
Several said they were struck by the magnitude of the cuts, noting that GM has steadily eliminated contract jobs but in smaller numbers, 10 or 20 at a time.
The job losses darken the already grim employment outlook for Michigan, which is expected to lose jobs for a sixth straight year in 2006 despite the national economy's resilience. In the past year and a half, the state has lost more than 15,000 professional and business services jobs, a category that includes engineers and designers.
But the move also signals that GM is moving quickly to slash its costs in North America, where it lost $4.8 billion in the first three quarters of 2005.
Since 2000, the automaker has reduced its U.S. salaried and contract employee headcount by 32 percent, averaging annual reductions of around 5.5 percent a year.
In November, Chairman and CEO Rick Wagoner announced a restructuring plan entailing the closure of four assembly and six component plants and the downsizing of other facilities. In all, 30,000 blue-collar jobs will be eliminated by 2008.

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[SobeSVT]

I would fire Lutz and Wagoner and with their salaries pay for 250 of those engineers.

[kool_zx3]

Originally Posted by SobeSVT

I would fire Lutz and Wagoner and with their salaries pay for 250 of those engineers.

Here, Here

On a good note, ford is hiring 250 engineers for the hybrid program

[SuperSS27]

They are probably engineers that do nothing all day except file paperwork and play on the computer....who knows the whole story.

[atomicshark]

This is the downside of giving much of GM's engineering and design work over to Opel and Daewoo.

[tgagneguam]

In other news, 12,000 workers continue to draw 95% of their pay in the Jobs Bank.

Where's the priority at your company, Rick?

[jwvrod]

Tough but necessary. GM always had too many designers and engineers. As for Lutz, you guys are cray.

[lineworker]

Originally Posted by tgagneguam

In other news, 12,000 workers continue to draw 95% of their pay in the Jobs Bank.

Where's the priority at your company, Rick?

On a better note 3500 people will be returning to work at the New Lansing Delta plant start Feb, 1st.,most will be coming off JOBS BANK.

[msupete]

trim the fat

[Mikkoo]

Originally Posted by tgagneguam

In other news, 12,000 workers continue to draw 95% of their pay in the Jobs Bank.

Where's the priority at your company, Rick?

This will be a huge sticking point when the UAW contract is up for renewal. You can bet GM will fight to have this huge financial burden removed.

[ChevyOptra5]

I'm sure they're not very important engineers anyways. The risk is there that they'll go to rivals Toyota.

[bone]

Now, if only GM would fire 500 bean counters!

[bone]

Now, if only GM would fire 500 bean counters.

[New_Mexico_Sunset_on_Rt66]

As an engineer I can speak for what this really means. The article says "contract engineers", or also called "non-directs" in the industry. Contract engineers are typically hired through on outside "head hunting" agency and will typically accept a 3 month, 6 month or 1 year contract. Contract engineers are typically hired by firms to get them through a "rough spot", say where there is a short term increase in workload.

Contract engineers can typically make 2-3 times the salary that a "direct" employee make, but not always. The downside with being a contract engineer is the work is not stable. That is you may work for 6 months, but then have 3 months off. Contract engineers typically know this, and are willing to accept the decrease in job security, with the corresponding increase in salary.

With that said. The "direct" employees", or those that work for the firm directly, with all it's overhead, watch when contract employees are laid-off, because typically firms will let the contract folks go before the "direct" employees.

Doesn't seem to be a big deal. Most of those contract engineers have probably saved allot of money, or should have.

[spdwayGm]

Originally Posted by SuperSS27

They are probably engineers that do nothing all day except file paperwork and play on the computer....who knows the whole story.

And they were instrumental in the "Design" the "new" GMT-900's. Groundbreaking look there guys.

Don't let the door hit ya where the good Lord split ya.