GM buyouts and plant closure update

[wolverine]

An update from "The Big Guy", a.k.a. Mr. Wagoner on buyouts and plant closures:

General Motors Corp. CEO Rick Wagoner said Thursday that the company could have to shutter more U.S. factories or eliminate shifts at plants to bring the automaker's production in line with declining demand for cars and trucks in its home market.

He didn't say how many plants will close or whether GM has decided which facilities to shutter, but said the closures will include powertrain and stamping factories as well as assembly plants. Additionally, Wagoner said the company will offer buyouts to 46,000 of its 72,000 blue collar workers. GM wants to cut costs by about $5 billion by 2011.

GM will extend buyout offers to its entire U.S. work force next month and usher the workers out in April. GM hasn't announced how many workers it will accept from those who are eligible.......................


http://detnews.com/apps/pbcs.dll/art.../BIZ/801170469

[Lewie]

Wave good-bye to the old and usher in the new (non-union workers). lol

[montrealvue]

Goodbye USA and hello Asia and Mexico....not exactly surprising, just disappointing....

[jbernie]

I suppose on one hand the benefit could end up being the lower the costs the more GM is able to introduce more expensive technologies for less. ie Volt & all the hybrids that are coming along.

Seeing that kid of reduction is not something to celebrate though, it is good for the company's health but I wonder how much it will impact the local economy in the cities affected.

[nascarnate326]

Originally Posted by Lewie

Wave good-bye to the old and usher in the new (non-union workers). lol

Couldnt have said it better my self. Either the Union has to go, or the jobs have to go. I wish GM and everyone working for GM the best of luck.

[JackDye]

These savings are not from additional net reductions, but implementation of the labor agreement. Most of the savings on medical/retirement do not begin until 2010. Then there is a big savings number from the replacement of retired workers at lower benefit levels.

I am sure there will be some adjustments to overall employment, but this is really about changing the composition of the union workforce under the recently signed agreement.

If you have time, you should go listen to the presentation. It lays out a pretty compelling remake of GM's financials in the next 24 months.

Jack.

[skylark68]

Sorry to hear about the jobs that are being lost. Hopefully they can find a job out there that's better than Wal-Mart or Burger King. Our economy is increasingly going to service industries for those without a college education (and even for those with a college education).

[hymeballs]

Why is everybody so hatefull towards us? I don't care what you make or what you do so why does everyone want to gloat about people losing their jobs and such? If it has nothing to do with your life then why get involved? When your mother dies of cancer, should I dance around her grave because I think your overpaid? Honestly, when you buy a TV do you give a fcuk about what the people earn that made it? If your not happy with YOUR life and career then change it and quit tossing grenades at others !!! Don't bash others for wanting security.....I hope the best towards everyone but I will no longer read these posts nor visit this website, its just depressing to read such resentment at people that shouldn't bother you at all. I would like to update you with Orion news and rumours about new products but I can't with all the negativity thats constantly thrown at me and my co-workers. Good luck to all and thanks for those who have supported the UAW and those who want a better life....

[member12]

Come on everybody. Buy a car.....

[bone]

The auto industry is changing so fast I'm afraid I won't recognize it in ten years. One thing I'm going to do before its too late is to buy myself a real car, something like a CTS or if I can get one in Canada,a top of the line G8. I do have some sympathy with the unionized auto-workers because they are mainly responsible for creating and expanding the middle class. Yes, they went too far,however,let's remember the Detroit 3 caved into their demands.

[jbartley]

hard to believe they are doing/done this all in such a short time.

nothing short of aaweeeesome!

[K Dawg ONE]

Originally Posted by bone

if I can get one in Canada,a top of the line G8.

When your ready, come see me and ill gladly sell you one

[TimR]

Originally Posted by hymeballs

I hope the best towards everyone but I will no longer read these posts nor visit this website, its just depressing to read such resentment at people that shouldn't bother you at all. I would like to update you with Orion news and rumours about new products but I can't with all the negativity thats constantly thrown at me and my co-workers. Good luck to all and thanks for those who have supported the UAW and those who want a better life....

I have to agree with you. Not a fan of unions but some people on here are just brutal. Good luck to you, and keep on building nice products, some people do appreciate the effort (mostly the ones who don't post).

[t-rex]

Originally Posted by hymeballs

Why is everybody so hatefull towards us? I don't care what you make or what you do so why does everyone want to gloat about people losing their jobs and such? If it has nothing to do with your life then why get involved? When your mother dies of cancer, should I dance around her grave because I think your overpaid? Honestly, when you buy a TV do you give a fcuk about what the people earn that made it? If your not happy with YOUR life and career then change it and quit tossing grenades at others !!! Don't bash others for wanting security.....I hope the best towards everyone but I will no longer read these posts nor visit this website, its just depressing to read such resentment at people that shouldn't bother you at all. I would like to update you with Orion news and rumours about new products but I can't with all the negativity thats constantly thrown at me and my co-workers. Good luck to all and thanks for those who have supported the UAW and those who want a better life....

With all due respect, I think it's rather arrogant of you to expect the same standard of living performing a job that requires no education, and little, if any, technical prowess, as those who spend years attaining professional degrees.

I'm all for people being able to make a nice living, but it's not as though the economy hasn't been moving away from manufacturing for the past twenty years. I have no pity for those who failed to see the writing on the wall and instead chose to put all their eggs in the manufacturing basket.

While personally I'd like to see manufacturing jobs stay here in the country, it's morally abject how UAW members feel they're entitled to pay packages that are double what any other manufacturing job in the economy pays.

If you want to bling with the big house, new cars, home theatre and all the other material trappings that your bloated pay affords, then do like those who committed years of their lives to educating themselves and becoming proficient in their chosen profession.

If you think I'm going to pity you because you walked out of high school and expected a job that affords you lavish luxury goods, then you're taking your argument to the wrong person.

And no, I don't think you're overpaid, my problem lay with your attitude of feeling it's owed to you. It isn't...

[Lichtronamo]

Originally Posted by skylark68

Sorry to hear about the jobs that are being lost. Hopefully they can find a job out there that's better than Wal-Mart or Burger King. Our economy is increasingly going to service industries for those without a college education (and even for those with a college education).

The jobs aren't "lost". GM is buying out senior UAW labor in order to bring in new, lower wage workers provided for by the new CBA. And, lower wage doesn't mean substandard. At $14.00/hr, these people will have an opportunity to make approximately $29,000 per year, plus benefits. That's a lot more than a McJob.

Interestingly enough, adjusted for inflation, $29,000 per year is exactly equal to the salary I started at after college in my current field in 1994.