GM offers buyouts to all hourly workers

[maddezmom]

Source: CNN

NEW YORK (CNNMoney.com) -- General Motors is offering buyouts to virtually all of its remaining hourly workers, becoming the latest automaker to try to cut labor costs by giving nervous workers an incentive to leave the company.

The move follows a similar move by Chrysler LLC, which made an offer to its hourly workers on Monday.

The GM (GM, Fortune 500) offer, which takes effect Friday, is less lucrative than the deal proposed by Chrysler, or even offers that GM has made to its hourly staff in the past. The automaker will give most of its 62,000 U.S. hourly workers $20,000, as well as a voucher good towards the purchase of a GM car worth $25,000.

In the past, GM offered between $45,000 to $62,500 to workers to retire early, and $140,000 to employees who left the company and agreed to give up post-retirement health care coverage. Those offers were all cash.

Chrylser's offer is for to $50,000 to virtually all of its 27,000 U.S. hourly workers, along with a voucher good for up to $25,000 on the purchase of a vehicle.



Read more: http://money.cnn.com/2009/02/03/news/companies/gm_buyouts/?postversion=2009020311

[Veritas_et_Aequitas]

1. Depressing. nt

[Skink]

2. The automated assembly line Robot now has to work in the showrooms.

[NM Independent]

3. I think I would take it if I were them.

It's better than being laid off.

A truck could be purchased with the voucher to try to start a private business. Maybe?

[blue_onyx]

9. Yeah, but what to do after the buyout money is gone

Some people have homes and families so they need the job. There's not many new jobs around here and selling a house is almost impossible so people might end up stuck here without a job. For some people, it might be the best choice to just take the money and leave. For others, it may be better to stay and risk a potential layoff....just depends on each persons' situation.

[MaineDem]

4. The UAW took over the pensions, right?

Will these folks still be entitled to a pension and health care?

[maddezmom]

5. more info here: GM buyouts target higher-paid workers

The Detroit carmaker is making the offers mainly to get high wage earners off the books as it restructures. If older and higher-paid workers leave, they can be replaced with new hires who will be paid about half as much under GM’s two-tiered wage structure. An established assembly line worker earns nearly $30 per hour.

“This is specifically designed to restructure the business to reach long-term viability,” GM spokesman Tony Sapienza said.

~snip~

However, Brian Fredline, president of United Auto Workers Local 602, which represents hourly workers at the Lansing Delta Township assembly plant, said GM is offering $20,000 cash payments and $25,000 new vehicle vouchers. Union leaders were told of the offers in e-mails sent Monday.

In addition, workers who are 50 years old or older and have at least 10 years of service will be able to retire early and receive their pensions and other retirement benefits.

Workers who are younger or haven’t been at the company as long can also take the cash-and-car voucher offers. But they will sever ties with the company, retaining any vested pensions but losing all other GM benefits.


more:http://www.lansingstatejournal.com/article/20090203/NEWS03/902030344

[MaineDem]

7. Good information, thanks. (n/t)

[michreject]

23. No

The union takes over the health care in 2010. Maybe.

[adamuu]

28. so, what, you'd recommending holding out for a better deal?

doesn't seem likely.

[Alhena]

6. I want to be paid to not apply to work there

nothing major, I'll settle for $5,000.

[Romulox]

13. What an assinine, insensitive post. nt

[Alhena]

18. Asinine***

[Romulox]

31. I'm comfortable with my spelling on this one.

:eyes:

[onehandle]

8. GM is going to have another big wave of layoffs in 3 weeks.

But you didn't hear it from me.

[murray hill farm]

10. Take the money and run.

Especially if ya do not own a house. Get a truck, move south to a small town where it is warmer and easier to live and start over with a simple life style...get some chickens and grow a garden. If you do own a house...just do it anyway cause u will most likely loose it anyway. File for bankruptsy once u have resettled.

[Deja Q]

11. Your point would be better stated if your grammatical skills could be elevated. Just a tad.

I'm sorry, but It's "lose", not "loose".

And "u" and "r" are not words. This isn't an online game where, within a small quantity of milliseconds, using a loose assortment of letters to double as words is going to count. There's plenty of time to compose simple sentence structure.

And even in the UK, I do not believe it is spelled "bankruptsy". Please try "bankruptcy" instead.

By the way, have you calculated the cost to raise and keep the chickens? The cost of seeds and equipment? The size of garden? How much time it takes these foodstuffs to grow? No amount of "Miracle-Gro" is going to help accelerate things either... and please don't get any ideas from that episode of "Gilligan's Island" either...

How many chickens and vegetables* for just ONE person will have to consume, per day, to stay alive?

Oh, some water will come in handy too...

I'm sorry for coming across as some sort of an elitist. Given the time I spent paranoid over bullies, thugs, and molesters, it's amazing I learned a damn thing in my childhood... In other words, my skills are extremely rudimentary.


* Not "veggies". Please, don't ever use "veggies" expect to retain credibility. This is not some lamented television "infomercial" trying to hawk some poorly conceived product that's been poorly manufactured too.

[murray hill farm]

12. Ohhhhhhhhh my god!

It appears the grammer and spelling police have found me....yikes!

[snooper2]

14. Hey, I had a loose house once

Actually I do now- need 3 piers on each side of the garage- ( slab construction )

:rofl: :rofl: :rofl:

[Doremus]

27. Look! It's the grammar and anti-gardening police!

Do you work very hard at spreading nastiness or does it come naturally?

By the way, you don't sound like an elitist, just an uptight snob with a control issue.

[michreject]

15. Not entirely true

When I left in 06, I only got 30,000. That was max. I had 30 years of service.

[marketcrazy1]

16. is this taxable??

I would think so, if so total taxable would be 45K - 20K cash + 25K value of voucher?? wont leave much....

[michreject]

22. Yes.

I cleared 22,000. I gave my wife 1/2. I put a new drive way in, then got divorced.:banghead:

[marketcrazy1]

24. michreject..

that sucks......... time for ---:beer:

[michreject]

26. It ain't all bad

I got my gun collection and my 03 Harley.:)

[bluestateguy]

17. I would take the buyout IF...

I was nearing retirement age anyway, AND if I had enough saved up for retirement to hold me over.

[Earth_First]

19. What sort of taxes is this money subject to?

Just your normal payroll tax?
Or does the government have 'special' ways to tax this on these unfortunate souls?

[Jack_DeLeon]

20. Take the money and get the fuck out of there...

Michigan and the states in that area I dont think will have a healthy economy for a good long while.

The smart ones will leave, the stubborn ones will stay and deal with the consequences.

[llmart]

29. I am inclined to agree with you.

I have said in the past six months that it will take a decade for Michigan to recover. I'm not trying to be a pessimist - just a realist. You have to go where the jobs and money are and you have to deal with your own situation and future first and foremost.

[kpominville]

21. This will only make things worse!

Less employees means less consumer demand!
This is a downward spiral!

[AwakeAtLast]

25. And less dues-paying UAW members

That's their ultimate plan, I'm afraid. x(

[KillCapitalism]

30. So what do they plan to do after that?

Replace all those workers with new ones that are willing to start out at $8 an hour?

Or are they going to have one poor guy in each factory start at the beginning of the line running along with the vehicle to each station until the vehicle is completely assembled and then start over again?

:crazy:

[sarcasmo]

32. I don't know what to say anymore other than the Union has been destroyed with the help

of the Bush administration.