GM Canada workers offered rich buyouts

[doh]

http://ctv2.theglobeandmail.com/serv...N/ctv-business

General Motors of Canada Ltd. workers in Oshawa, Ont., will be offered retirement incentives of as much as $120,000 and the company's new flexible manufacturing plant will begin producing front-wheel-drive vehicles alongside the rear-wheel-drive Camaro under a deal the Canadian Auto Workers union has struck with the auto maker.

Production of one front-wheel-drive vehicle will begin in 2010 and output of another in 2013 in addition to the Camaro and another rear-wheel-drive model, union officials said after concluding a deal that ends weeks of negotiations with GM and a bitter dispute over the company's plan to close its truck plant in Oshawa next year.

Skilled trades workers with 30 years experience will receive a $120,000 retirement incentive and a $35,000 voucher for a new GM vehicle. Production workers with 30 years seniority will be eligible for a $100,000 retirement incentive and the car voucher.

Workers at the low end of the seniority scale will also be eligible for retirement incentives. Production workers with less than three years on the job will receive a $37,500 payment – skilled trades employees will get $45,000 – and will be eligible for all benefits except for the company's dental program for six months after they leave.

In addition, workers with between 26 and 30 years experience will be paid 65 per cent of their wages until they reach the 30-year level, as well as receive retirement incentives and the car voucher.

GM has signed letters promising to add new products to the new flexible assembly plant in Oshawa as well as extend production of the Chevrolet Impala at its existing Oshawa car plant for an addition year, to 2013.

The money for the buyouts will come from a special GM fund and not the company's supplementary unemployment benefits (SUB) fund, which also receives contributions from the union.

They will be made available to all 8,700 CAW members working at the three GM assembly plants in the city.

The union will drop the grievance it has filed over the closing of the truck plant scheduled for next year and agree to end a two-shift rotation at the truck plant as of Dec. 31, instead of insisting such an arrangement continue until the plant closes.

Production at the truck plant is scheduled to be reduced to one shift in September. The union insisted during contract negotiations in May that GM rotate the time off between two shifts rather than eliminating an entire shift.

[K Dawg ONE]

This is the same contract buyout (as expected) that the GM Transmission plant employees here in Windsor will be receiving....

[Ambalanche]

Rich buyouts is right!!

[Family Man]

Geez... Gm wonders why they don't make money. If I was to get laid off from my company because of lower sales, I don't think I'd get $37k, and I have 10+years of service here.

And for all of our American friends, the $35k car voucher gets you Malibu LTZ type of car. No one is driving off in Caddys...

[usa1]

More buyouts = more money GM spends on getting rid of overpriced workers and less on new products. Sigh. Think of all the money they could have saved if they didn't have to piss this bribe money at the CAW and UAW.

However, it's good to see GM get this behind them. They will emerge much more competitive as a result. I just hope their money holds out long enough to get them through this all.

Mark

[61BelAir]

Originally Posted by Family Man

Geez... Gm wonders why they don't make money. If I was to get laid off from my company because of lower sales, I don't think I'd get $37k, and I have 10+years of service here.

And for all of our American friends, the $35k car voucher gets you Malibu LTZ type of car. No one is driving off in Caddys...

$35k voucher should get you into a CTS especially with the deals going on right now and the fact they probably get an employee discount.

[johnnyl321]

Think of how much they could have saved if it weren't for all those health care costs that have skyrocketed in America. What does GM have, hundred thousand retirees or something like that? That's a lot of money right there.

[dindak]

Originally Posted by 61BelAir

$35k voucher should get you into a CTS especially with the deals going on right now and the fact they probably get an employee discount.

Yup, CTS has a $2000 adjust right now, MSRP here is $37900 and I'm sure you could knock off another $3000. Add tax though.

Nice.

[canadianworker]

Originally Posted by 61BelAir

$35k voucher should get you into a CTS especially with the deals going on right now and the fact they probably get an employee discount.

$35,000 voucher gets taxed before we get it......it turns out to be $24,500 and we cannot use it with our employee discount.

[61BelAir]

Originally Posted by canadianworker

$35,000 voucher gets taxed before we get it......it turns out to be $24,500 and we cannot use it with our employee discount.

That sucks....oh well, it's still a heck of a down payment then.

[canadianworker]

Originally Posted by 61BelAir

That sucks....oh well, it's still a heck of a down payment then.

Oh ya, still a good downpayment, I'm not complaining. I just wanted to make sure the facts were right around here

[K Dawg ONE]

Originally Posted by canadianworker

Oh ya, still a good downpayment, I'm not complaining. I just wanted to make sure the facts were right around here

Not 100% on that...as far as I know, you CAN use it with either Option 1 or Option 2, BUT, it can not be used to finance a vehicle (ie, cash buy only)

[Family Man]

Originally Posted by canadianworker

$35,000 voucher gets taxed before we get it......it turns out to be $24,500 and we cannot use it with our employee discount.

Ahhhh... Mr Taxman. I forgot about him.

Thanks for clarifying.

[hunchman]

Originally Posted by johnnyl321

Think of how much they could have saved if it weren't for all those health care costs that have skyrocketed in America. What does GM have, hundred thousand retirees or something like that? That's a lot of money right there.

This is GM Canada and the health care was not as big as an issue as it was in US.

[Tony_the_Tiger]

- The Oshawa autoplex union workers have won many quality and production awards for their work over the years and in my opinion this retirement incentive and buyout program is the least the company can do to reward their workers for years and years of profits.

- It is indeed an impressive package......

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