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Guest Josh

GM Using Replacement Workers For Up To 1 Year

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Guest Josh

I've heard this for awhile now, or rumblings at least but this is what GM and the UAW will be doing to replace the massive number of people that are leaving GM due to the early retirement buyouts.

Evok and I have speculated in the past that some type of agreement would be conjured up between the Union and General Motors to replace those workers.

This is the deal.

GM has already began hiring temporary workers at three locations in Metro-Detroit. These temporary workers are being told they will be kept with the company for at least one year. However they will not have health benefits, and will not be considered part of the Union.

Once the year passes, if General Motors lets them go, then in the future brings them back they will have to work 90 days then be certified as part of the Union.

This is happening at three plants already.

In Hamtramck the word going around is that up to 2,000 jobs will be handled like this due to workers leaving.

At Pontiac Truck & Bus the # is unconfirmed but it said to be many.

At Livonia Engine, nearly 70% of the workforce is leaving which means that nearly 70% of workers will be temporary for at least one year.

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GM Hiring Temporary Recruits as Union Workers Leave

May 24 (Bloomberg) -- General Motors Corp. has started hiring non-union workers for temporary jobs at several U.S. plants to replace union employees who are leaving because of buyouts and retirement incentives.

``GM has definitely started contacting locals to get some temporary workers out there,'' said Dennis Henry, 63, president of United Auto Workers Local 160 in Warren, Michigan. ``They're expecting labor shortages because of the attrition program.'' GM needs the new employees to avoid hiring new workers at plants that are closing and to cover shortages caused by buyouts.

The Detroit automaker wants ``accelerated attrition'' from as many of its 113,000 union employees as possible. The effort is part of a plan to cut labor costs after losing $10.6 billion last year. GM's agreement with workers allows it to address manpower issues as they arise, spokesman Dan Flores said. He said more than 100 workers have already left.

Hiring temporary replacements is the next step in GM Chief Executive Officer Rick Wagoner's plan to complete the closing of nine manufacturing plants and three parts depots by 2008. The plant closings are part of annualized cost cuts, including reduced union health-care coverage, expected to total about $7 billion by the end of this year.

GM shares rose 92 cents, or 3.8 percent, to $25.40 in trading before the open of the New York Stock Exchange. Merrill Lynch Analyst John Murphy today raised his rating on GM from neutral to buy and set a $37 per share price target on optimism the employee buyout program will boost earnings.

If the buyouts aren't sufficient, GM, the world's largest automaker, may need to take other steps to reduce the workforce, Wagoner told reporters two weeks ago, without giving specifics.

``We have to focus on maintaining production levels during the transition,'' Flores said. He confirmed some of the temporary workers have already been hired, and couldn't estimate of how many will ultimately be needed. Current workers have until June 23 to accept retirement or a buyout, some as high as $140,000.

Some union employees are receiving letters that let them recommend people for the jobs, said Flores, without saying how many letters are being sent. The March buyout agreement doesn't specify how long the temporary workers could be employed at the plants.

Local 160's Henry said 300 of his 2,800 members have taken the buyouts and at least 700 were interested. Some people are leaving July 1, the beginning of GM's regular two-week summer shutdown, Henry said. He expects the temporary workers will make $16 to $17 an hour. A UAW assembly worker earns about $27.

``We're expecting about 78 temps to come in and help out,'' said Jeff Manning, interim president of Local 31, which represents about 3,000 workers who build the Chevrolet Malibu sedan in Kansas City, Kansas. ``Some of them have started already and we'll be getting more in the next couple weeks.''

UAW Vice President Richard Shoemaker told union leaders earlier this month that 12,400 GM workers had accepted the buyout offers.

http://www.bloomberg.com/apps/news?pid=conews&tkr=gm:US

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Once GM eliminates the remaining 30,000 + production jobs, their workers/car should be aligned with the same efficiency as Toyota in NA. Based upon 2005 data, Toyota is about 75 workers/car.

GM:

White collar: 36,000

Production: 106,000

Retirees: 460,000

Toyota:

White collar: 17,000

Production: 21,000

Retirees: 1,600

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if toyota is really American like they want to be, let them pick up some of those pension and health care costs. because otherwise, somehow, we'll get stuck with them in some form.

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