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LS1Hawk 02-03-2009 01:15 PM

GM offering buyouts to hourly employees
 
GM to offer buyouts to all hourly employees
By DAN STRUMPF (AP Auto Writer)
From Associated Press
February 03, 2009 2:02 PM EST

NEW YORK - General Motors Corp. will offer buyouts to all of its hourly employees, a spokesman confirmed Tuesday, as the troubled automaker continues to slash costs.
GM spokesman Tony Sapienza said the buyouts will mainly target GM's 22,000 retirement-eligible hourly employees, though any union employee can take the offer.

News of the buyouts first broke on Monday. A union official told The Associated Press then that GM would offer $20,000 in cash and a $25,000 car voucher for workers who retire early and those who simply leave the company. The official spoke on condition of anonymity because workers were not yet notified of the packages.

Sapienza confirmed that the offer will consist of a car voucher and a one-time cash payment, though declined to offer more details, saying that employees will be informed of the specifics of the offer on Friday. However, he said the latest offer would be less generous than previous buyouts.
Sapienza said employees will have until March 24 to decide whether to accept a buyout. Employees who accept the buyout will leave the company by April 1.

The buyouts are the latest round of cost-cutting measures by GM, which is racing to piece together a plan for returning to viability by the middle of the month. The Detroit-based company is scheduled to report January auto sales later Tuesday, and analysts are expecting a steep year-over-year decline.

Shares of GM fell 20 cents, or 6.9 percent, to $2.69 in afternoon trading.


http://enews.earthlink.net/article/t...02031271695201

NJSPEEDER 02-03-2009 01:19 PM

That's not a terrible deal. Even if someone was to know outright they wanted to take the buyout they could job hunt in their off hours. Basically it gives them until March 24th to line up new employment before they are even forced to declare a decision.

$20k and a car for changing jobs, sounds like an offer I would at least have to consider if I was in their shoes. Even if you pick up a car for the full $25k, after taxes for the cash buyout and the car you would still walk away with $7k or so in cash and you got a new car.

Frosty 02-03-2009 02:47 PM

That's not a bad deal at all.

Knipps 02-03-2009 03:22 PM

Basically a new 2SS to leave :lol:

SRGN 02-03-2009 08:43 PM

http://www.thestar.com/Business/article/581535

FBODS4EVER 02-03-2009 08:45 PM

i heard it was being offered to thier 22000 employees close to retirement. i'd take the deal. especially if i had a nice pension plan. which im sure they had.

NJSPEEDER 02-03-2009 08:51 PM

Union pension plan, 25 years of service. Not sure what their salary percentage pay out is, but I am betting it is good since those contracts were all negotiated back in the fat, dumb, and hapy days when GM gave the UAW whatever they wanted just to keep them working.


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