GM Says About 19,000 U.S. Union Members Took Buyouts

[WWI Flying Ace]

http://www.bloomberg.com/apps/news?p...a9WYw&refer=us

[tom3]

Interesting that the replacements will be paid about 14 bucks an hour, but in non-assembly jobs. So who will screwing the vehicles together? Be curious to see how this works out. Can't imagine this being good for the quality of GM cars when all this is implemented.

[tgagneguam]

In the past two years, about 33,600 U.S. factory workers departed Ford Motor Co. through buyouts. Last month, Dearborn, Michigan-based Ford said an additional 4,200 had accepted its latest offers...

...GM's U.S. truck sales fell 18 percent in the first four months of this year as buyers cope with record gasoline prices by seeking models that burn less fuel. GM's total sales fell 12 percent. The company has lost $54 billion since the end of 2004.

GM offered retirement and buyout incentives to all 74,000 of its UAW members in February. Assembly line workers with 30 or more years of service are eligible to receive payments of $45,000. Employees with a skilled-trade designation such as electricians will get $62,500. The new payouts exceed the $35,000 offered previously to retirement-eligible UAW members.

Absolutely sobering numbers that will amount to nothing, as they did in the past, if GM's management doesn't juxtapose continued cuts beyond the marrow with a consistent, thoughtful product strategy that marries strong brand identity with strong product. Thus far, GM's record on the latter count isn't particularly inspiring. Anyone can cut staff and produce a profit for the next quarter-of course, GM cannot even manage that low-bar feat. But the true test of management is if it can earn its extremely high compensation and once again get GM to gain traction in NA.

I'm not so sure the current team possesses the talent.

[J Man]

Originally Posted by tom3

Interesting that the replacements will be paid about 14 bucks an hour, but in non-assembly jobs. So who will screwing the vehicles together? Be curious to see how this works out. Can't imagine this being good for the quality of GM cars when all this is implemented.

I should not affect quality at all. These lowed wage workers will be doing what is called Non - Core jobs. These are jobs that do not have direst involvement with the car or componets, depending on the type of plant. Non - Core jobs will also be different from plant to plant. Each local Union and plant managment get together to decide what jobs are affected. Also all janitor jobs are being contracted out. Quality should and will remain the samesince the same workers will be building the parts or various items that GM still makes.

[Tony_the_Tiger]

When the $10.oo / $14.oo per hour Non - Cores start to outnumber the $28.oo Core workers, how long do you think it will take the companies to get all their high dollar Core worker wages lowered? All they have to do in the next wage negotiations is offer a few crumbs to the Non - Cores and everyone will be making minimun wages!
Now that should really help sales......

[lost-sole]

Originally Posted by Tony_the_Tiger

When the $10.oo / $14.oo per hour Non - Cores start to outnumber the $28.oo Core workers, how long do you think it will take the companies to get all their high dollar Core worker wages lowered? All they have to do in the next wage negotiations is offer a few crumbs to the Non - Cores and everyone will be making minimun wages!
Now that should really help sales......

i agree there. Here in out plant we dont have core or non core, its all new hires hire in at 14$ and then when there is more of them than us, instead of climbing the ladder slowly like we have been we will be climbing down the ladder really fast next contract, thats if they decide to keep the place open.


its gonna get real ugly when there is 20 thousand 14 dollar an hour jobs out there.