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Title: GM To Shed Quarter Of Workforce This Year; One Of The Most Dramatic Corporate Downsizings In US History
Source:
Financial Times
URL Source: http://msnbc.msn.com/id/13541353
Published: Jun 25, 2006
Author: Bernard Simon in Toronto
Post Date: 2006-06-25 18:34:35 by Brian S
Keywords: None
Views: 272
Comments: 8
General Motors will on Monday disclose details of one of most dramatic corporate downsizings in US history, exceeding a key target of its turnround plan and accelerating the demise of the privileged American car worker. Rick Wagoner, chief executive, is expected to announce that about 30,000 workers – more than a quarter of GM's blue-collar US workforce – have taken up its offer of early retirement and severance packages. Almost all will leave by the end of the year, achieving in a few months what the company had set out to accomplish over more than two years. A total of 50,000 workers or more is set to leave the industry over the next few months. Later this week, Delphi – the former GM subsidiary which is north America's biggest auto parts maker – is expected to disclose that at least 9,000 of its 31,000 unionised workers have accepted similar buy-outs. Many Delphi workers not included in the original offer, have until late July to decide. In addition, Ford, the second-biggest Detroit-based carmaker, has disclosed that more than 10,000 workers have taken packages. All three companies are also cutting salaried staff. The GM buy-out "is really historic", said Gary Chaison, industrial relations professor at Clark University in Massachusetts. He said it marked "the end of the good jobs" in the auto industry, created when the Detroit carmakers held a dominant market share, or were willing to grant generous concessions in return for labour peace. GM shares have soared by a third since the company announced the "accelerated attrition programme" late in March. They closed at $26.97 on Friday. The buy-outs, from $35,000 to $140,000 depending on length of service, will bring big savings to GM, especially in future health and pension benefits. They will also shrink the so-called Jobs Bank, which lets laid-off workers collect full pay just for showing up at an assembly plant each day or doing volunteer community service. The buyouts are part of GM's plan to bring north American capacity into line with its shrinking market share. It is cutting capacity by 1m vehicles a year, with a dozen plant closures by 2008. GM's share of the car and light truck market fell to 22.5 per cent last month, the lowest for decades. It has sacrificed some market share in recent months to wean buyers off discounts and other sales incentives. Nonetheless, GM is expected to announce a new incentives programme tomorrow, in response to an aggressive promotion by DaimlerChrysler's Chrysler unit. It heralds tougher times for the United Auto Workers union, once the aristocrat of the US labour movement. Membership fell to 557,000 last year, about a third of the level in its 1970s heyday.
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#1. To: Brian S (#0)
"Our economy is strong, yet I will not be satisfied until every American who wants to work can find a job," Press 1 for English, Press 2 for English, Press 3 for deportation
Buy a Japanese car. They don't treat their people like shit, the CEO's aren't hideously overpaid and they still make better products than GM.
"I'm pretty sure that I have you out-gunned"
No can do. Tried, but just cannot bring myself to wheel something down the road called a Mitsubonzai or something like that. I drive a coupla heaps over thirty years old made when they still made cars here. Cheaper to pour dough into them, than buy a Nipmobile. Of course getting parts that fit is troublesome sometimse, since most part-makers have out-sourced. I'll just keep pushing the Maverick and the Duster around until they push me down the road in the long black vehicle...hope it ain't a Jap one!!!!!
I'm for Press 3 (Don't stay away for so long)
The mind once expanded by a new idea never returns to its' original size
I'll go one better. Buy anyhing that is made with the employment of mom & pop in America regardless of the make. Ford, GM, and Chrysler (already owned by foreign interests) are playing the American consumer as fools. They are killing off good paying jobs here at home, moving them to less than U.S. minimum wages in foreign countries to sweeten the bottom line for the Ceo's to rob and for the greedy stockholders. Then they bring those shoddily made autos back to America expecting the stupid Americans to buy them. I say don't buy any U.S. made auto period.Buy any brand assembled here at home and keep mom & pop working and help pay the overburdened taxes. Let the big three eat cake.
Keep em running while you can. The big three sure as hell don't make them like that anymore.
"I'm pretty sure that I have you out-gunned"
Honda has a plant a few counties from where I live that has been making accords and civics for years. They aren't going to shut down and move operations to china or mexico. It's pretty damned bad when japanese companies have more respect for americans than american companies do.
"I'm pretty sure that I have you out-gunned"
ford had a policy of discriminating against white males and was sued for it. they fired a number of engineer-types for being an incorrect race & gender. they hired a female to head engineering because why do you think? because she was female. then afterwards their technical quality of engines took a nose- dive. at least they sold a lot of extra engines because of quality problems. diversity is good. and gm is scoundrels too. japanese companies at least have integrity. but methinks the new world order oriented banking system will just give them new money it creates and they will never go bankrupt no matter how much behind they are. and fraud will be used to prop them up.
Goofy George W. Bush
#2. To: Brian S (#0)
#3. To: orangedog (#2)
Buy a Japanese car.
#4. To: Uncle Bill (#1)
#5. To: orangedog (#2)
Buy a Japanese car. They don't treat their people like shit, the CEO's aren't hideously overpaid and they still make better products than GM.
#6. To: Soda Pop (#3)
I'll just keep pushing the Maverick and the Duster around until they push me down the road in the long black vehicle..
#7. To: LACUMO (#5)
Ford, GM, and Chrysler (already owned by foreign interests) are playing the American consumer as fools. They are killing off good paying jobs here at home, moving them to less than U.S. minimum wages in foreign countries to sweeten the bottom line for the Ceo's to rob and for the greedy stockholders. Then they bring those shoddily made autos back to America expecting the stupid Americans to buy them. I say don't buy any U.S. made auto period.Buy any brand assembled here at home and keep mom & pop working and help pay the overburdened taxes. Let the big three eat cake.
#8. To: orangedog (#2)
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