Sign in to follow this  
NINETY EIGHT REGENCY

GM shrinking hourly ranks

6 posts in this topic

GM shrinking hourly ranks

Automaker offering buyouts, early retirement to skilled-trade workers at 14 of its U.S. plants

Christina Rogers / The Detroit News

General Motors Co. said Monday it is offering $60,000 buyout and early retirement packages to skilled-trade workers at 14 plants because the automaker has 2,500 to 3,000 more of the highly trained workers than it needs.

This is the first time GM has used generous incentives to persuade hourly workers to leavethe company since the automaker emerged from bankruptcylast year.

Eight of the 14 plants targeted for the offers are in Michigan, and include Orion Assembly, where workers will start production next year on the new subcompact Chevrolet Sonic, the successor to the Chevy Aveo.

Workers who take the buyout or retire early must leave their jobs by March, said GM spokesman Chris Lee. Those who take buyouts — younger, less-tenured workers — will give up their retirement benefits for the $60,000 payout; those who take early retirement will get the cash and retain full retirement benefits.

The offers will go out by Dec. 23, but Lee said the number of workers who will get them is not yet clear.

Nine of the plants where skilled workers will get the option to leave are closed or scheduled to close; two others, Spring Hill Assembly in Tennessee and Janesville Assembly in Wisconsin, are on standby. The other eligible factories in Michigan are Grand Rapids Stamping, Livonia Powertrain, Pontiac Stamping, Pontiac Assembly, Willow Run Powertrain, Grand Blanc Weld Tool Center and Flint North Powertrain.

Lee said GM has used early retirement incentives and buyout offers to pare down its workforce in the past, but this time, the automaker is taking a more targeted approach by limiting it to 14 plants, most of which are either closed or slated to close.

GM has about 53,000 skilled trade and production workers at its U.S. plants.

Skilled trade workers include electricians, welders and other trades that require special training. The jobs are often less physically demanding than typical assembly line jobs, and are better paid.

The move comes as GM seeks to add hourly workers at other plants where it's ramping up new vehicle production. GM also said last month it plans to add 1,000 engineers to its electric vehicle program, as it tries to expand its expertise in this technology.

The automaker is on track to make its first yearly profit since 2004, and auto sales industry-wide are on the upswing, after falling last year to their lowest levels in 40 years. Despite the next year's rosier outlook, GM says it is working hard to contain costs and keep vehicle production levels in line with how quickly its car and trucks are moving off dealer lots.

GM's hourly labor costs have fallen along with its work force, from $16 billion in 2005 to $5 billion this year, due in part to cuts made as part of its bankruptcy restructuring.

The United Auto Workers union agreed to slash starting wages and benefits for newly hired workers to $14 an hour.

From The Detroit News: http://detnews.com/article/20101214/AUTO01/12140332/GM-shrinking-hourly-ranks#ixzz185lsqFxI

Share this post


Link to post
Share on other sites

GM offers buyouts to workers at 14 plants

By DEE-ANN DURBIN

ASSOCIATED PRESS

General Motors is offering buyouts to several thousand skilled trades workers at 14 plants around the U.S.

The automaker will pay eligible workers $60,000 to retire with full benefits. Younger workers will have the option to take the $60,000 in exchange for giving up retiree health care and other benefits.

GM spokesman Chris Lee didn't know how many workers will get the offers. The company estimates that it has 2,000 more skilled trades workers than it needs right now. Skilled trades workers do jobs that need special training, such as electrical work and welding.

Eligible workers will be notified by Dec. 23 and will have to leave the company by March 1.

Nine of the eligible plants have closed or are scheduled to close, which would put those workers on a temporary layoff from GM but would give them the right to transfer into other openings in the company. Those are assembly plants in Wilmington, Del.; Shreveport, La.; Doraville, Ga., and Pontiac; metal stamping plants in Grand Rapids and Mansfield, Ohio, and engine and transmission plants in Flint, Livonia and Ypsilanti Township.

The other eligible plants include Spring Hill (Tenn.) Manufacturing and Janesville (Wis.) Assembly, which have been closed but could reopen if GM needs them. Offers are also being handed out at three open Michigan plants: Grand Blanc Weld Tool Center, Orion Assembly and Pontiac Stamping.

GM has frequently used buyouts to trim its workforce as it tries to match output to its falling U.S. market share. About 66,000 U.S. factory workers have taken buyouts or early retirement offers since 2006.

The last buyout GM offered was in summer 2009, right after it emerged from bankruptcy protection.

Read more: GM offers buyouts to workers at 14 plants | freep.com | Detroit Free Press http://www.freep.com/article/20101214/BUSINESS01/12140416/GM-offers-buyouts-to-workers-at-14-plants#ixzz185nNp4E1

Share this post


Link to post
Share on other sites

GM TO OFFER BUYOUTS TO CUT WORKFORCE

By Andrew Ganz

General Motors has been on a hiring spree since it was bailed out by the United States government last year, but now the Detroit automaker says that it will attempt to reduce costs by offering buyouts for thousands of its skilled workers.

GM is offering $60,000 to skilled trade workers if they retire or otherwise leave the automaker, according to a spokesman.

The automaker is hoping to cut the ranks of higher-cost employees so that it can bring in less experienced, generally younger workers who are willing to do the same job for less money. The move will also help GM trim the ranks at some of its overstaffed facilities as it tries to keep pace with a still-recovering North American new car market.

GM spokesman Chris Lee said that the automaker has “a couple thousand” more workers than it wants to have. The offer is good through March at 14 of GM’s plants in the United States, which would allow GM to book the payout charges as part of its first quarter financial results.

link:

http://www.leftlanenews.com/gm-to-offer-buyouts-to-cut-workforce.html

Share this post


Link to post
Share on other sites

GM Offering New Round Of Buy-Outs

First since ’09, follows new hirings.

by Joseph Szczesny on Dec.15, 2010

GM may be hiring at some plants - the Chevy Volt line shown here - but it is about to begin a new round of buyouts elsewhere.

General Motors is offering buyouts to approximately 2,000 skilled tradesmen from 14 plants that have closed during the company’s restructuring.

The automaker will pay eligible workers $60,000 to retire with full benefits. Younger workers will have the option to take the $60,000 in exchange for giving up retiree health care and other benefits.

However, many of the skilled tradesman have taken work in auto plants after enduring the ups and downs in the boom and bust of the construction industry. They have already passed up several earlier buyouts and the number of employees interested in accepting the package is uncertain. But GM is apparently counting on the pressure of impending contract changes that could reduce eligibility for supplemental unemployment benefits.

Free Subscription! Click Here!

The UAW agreed to eliminate the so-called Jobs Bank last year when the company went through bankruptcy. That program essentially provided a check for those idled by a plant closure or other cutbacks until appropriate new work could be found.

If more workers do accept the offer, however, the buyout could add to GM’s unfunded pension liabilities, which GM CEO Dan Akerson recently pegged at $10 billion dollars.

GM spokesman Chris Lee said the company estimates it has 2,000 more skilled trades workers than it needs right now. Skilled trades workers do jobs that need special training, such as electrical work and welding.

Eligible workers will be notified by Dec. 23 and will have to leave the company by March 1.

Nine of the eligible plants have closed or are scheduled to close, which would put those workers on a temporary layoff from GM, which gives the employees the right to transfer into other openings in the company. The closed plants include Wilmington, Delaware; Shreveport, Louisiana.; Doraville, Georgia., and Pontiac, Michigan; metal stamping plants in Grand Rapids and Mansfield, Ohio, and engine and transmission plants in Flint, Livonia and Ypsilanti Township, Michigan.

The other eligible plants include Spring Hill (Tennessee) Manufacturing and Janesville (Wisconsin) Assembly, which have been closed but could reopen if GM needs them. Offers are also being handed out at three open Michigan plants: Grand Blanc Weld Tool Center, Orion Assembly and Pontiac Stamping.

GM last offered in summer 2009, right after emerging from bankruptcy protection.

The maker has also been hiring, in recent months, as it ramps up its electric vehicle efforts and increases production at plants that are building high-demand products, such as the Chevrolet Equinox crossover.

link:

http://www.thedetroitbureau.com/2010/12/gm-offering-new-round-of-buy-outs/

Share this post


Link to post
Share on other sites

Report: GM offering first employee buyouts since bankruptcy

by Chris Shunk (RSS feed) on Dec 16th 2010 at 9:58AM

General Motors would like to cut 2,000 skilled trade workers by March 2011, and the company is reportedly willing to part with $60,000 per employee to reach its goal. Bloomberg reports that The General is offering the hefty incentive to entice its highly paid skilled trades workers at 14 plants across America. Eight of those plants are scheduled for closure and two more facilities could shut down if demand drops off, no doubt making the money look even more attractive.

The buyout offers are the first GM has offered on a large scale since the company exited bankruptcy in 2009. Unlike past offers, though, GM is only targeting its skilled trades, while the lower-paid rank and file don't appear to have been offered similar deals.

[source: Bloomberg]

link:

http://www.autoblog.com/2010/12/16/report-gm-offering-first-employee-buyouts-since-bankruptcy/

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoticons maximum are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this