UAW: 25,000 GM Employees Take Buy-Out

[Perian]

Link: wsj.com

LAS VEGAS (Dow Jones)--United Auto Workers President Ron Gettelfinger said 25,000 workers at General Motors Corp. (GM) and 8,500 at Delphi Corp. (DPHIQ) have opted to take buyout or early retirement packages under ongoing early-attrition efforts at the two companies.

Gettelfinger, who was elected Wednesday to another four-year term as UAW chief, said the attrition plans are "going better than initially expected." The buyouts represent nearly a quarter of the entire U.S. unionized workforce at Delphi and GM, and the strong reception promises to go far in helping the two struggling companies lower labor-related costs that are crushing the bottom line.

GM is restructuring its North American operations and had previously announced plans to eliminate about 30,000 jobs by 2008, as part of an effort to restore profitability after suffering massive losses in its core automotive operations. Delphi, a former GM unit, filed for bankruptcy protection in October and plans to close or sell most of its plants in the U.S.

Gettelfinger's disclosure of actual attrition numbers represents the first public UAW statement regarding the specific progress on the accelerated attrition programs. Past news reports had indicated 20,000 GM workers and as many as 10,000 Delphi workers had opted for a departure package.

GM employees have until June 23 to decide whether to accept a package.

"We're pretty pleased with the results," GM spokeswoman Toni Simonetti said Thursday regarding the auto maker's attrition plan. "It's going to be quite helpful in transforming the company." GM lost $10.6 billion in 2005, with the bulk of the bleeding occurring in North American automotive operations.

Article continues at link.

[logansowner]

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

[jbartley]

they need to offer these "packages" to everyone they can.

then fire the rest! lol, just kidding...

[civilzues]

Originally Posted by logansowner

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

very ture!

[mjd1001]

Ok, I'm a little confused. The leader of the UAW says there are more buyouts than expected, so things are going well.....yet we just had an article on here saying the UAW is moving money out of a strike fund and is going to instead use that to lobby politicians in an effort to increase membership?

Seems kinda counter productive.

[56 Starchief]

im sure GM has figured out how to not get themselves in this again...

[jbernie]

If you buy out someone who costs you say $60,000 a year and for a period of time need someone to temporaily take their place and they are doing it for $35,000 a year, you win.

No doubt as these people actually leave the workforce GM will need to work with UAW to get people into the areas where they are needed.

[asim]

Originally Posted by logansowner

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

We'll just have to see, don't we?

[goblue1999]

Originally Posted by mjd1001

Ok, I'm a little confused. The leader of the UAW says there are more buyouts than expected, so things are going well.....yet we just had an article on here saying the UAW is moving money out of a strike fund and is going to instead use that to lobby politicians in an effort to increase membership?

Seems kinda counter productive.

I don't think they said they would be lobbying politicians, although that is part of their regular daily business.....they intend to try to recruit or coerce new members, probably at non-automotive businesses, since they have shown the world that whatever auto company they are involved in......goes down the tubes.

[goblue1999]

Originally Posted by asim

We'll just have to see, don't we?

supposedly, part of the deal was the ability to hire TEMPORARY replacements, which would logically mean they would only be used to smoothly transition to the "new" gm.

[VivienM]

Originally Posted by goblue1999

I don't think they said they would be lobbying politicians, although that is part of their regular daily business.....they intend to try to recruit or coerce new members, probably at non-automotive businesses, since they have shown the world that whatever auto company they are involved in......goes down the tubes.

Maybe they want to try and unionize Toyohondassan plants. Surely that's something no one on GMI, whether pro-union or anti-union, would disagree with?

[cfch3399]

If thing wen't GM's way they'd just close those plants and move them all to Mexico.

Originally Posted by logansowner

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

[lightbrotha2004]

Originally Posted by logansowner

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

As far as I know at Moraine Assembly 2300 people have opted for the package and no one is being replaced here that i know of so that 2300 less union workers, but this factory is union only. U dont join the union you don't work there. And I think they said they are only 1 of 2 GM facilities like that.

[61695]

Originally Posted by logansowner

Excellent.

My only concern is whether those 25,000 people need to be replaced with non unionized workers, and if so, how long until those non union workers join the union and plop them right back in the same position they are in now?

Mexicans don't have unions

[63GrandSport001]

Its a good thing for the union cuz if people didnt take the buy-out then there would have been a really big issue with GM and the union as GM would have to fire the 30,000 workers. This might have gone as far as to cause a strike at GM something that they really dont need in the coming years.

If GM would have had to fire the 30,000 workers causing problems it would have in the end weakend the union a great deal. This is best for GM, the workers that took the buyout packages, and the UAW a win-win situation.