GM Aims To Clear Out 'Thousands' Of Hourly Workers - Source
09 Juni 2009 - 9:09AM
Dow Jones News
General Motors Corp. (GMGMQ) has begun mailing early retirement
offers to its hourly workforce with the goal of clearing out
thousands more employees, according to a person familiar with the
situation.
The bankrupt auto maker is offering factory workers a $25,000
vehicle voucher and up to $45,000 to retire from GM under a deal
reached last month with the United Auto Workers. Workers can get
the voucher and up to $115,000 to quit early and cut ties with the
company.
Employees have until July 24 to decide whether to take the offer
and another week to change their minds, the person said. Around
7,600 workers took a similar offer extended earlier this year.
It will be GM's fourth buyout offer since 2006. The auto maker's
hourly ranks have shrunk by roughly 45% since then.
All of GM's 54,000 UAW-represented workers will receive an
offer, which GM is in the process of mailing to workers. GM has
declined to disclose a specific target for reductions.
But the auto maker is saddled with excess workers amid plans to
halt much of its production this summer and to idle or close 14
factories and three parts and service centers by the end of
2011.
Typically GM would disclose details of retirement offers through
meetings at its factories, but since so many plants are closed,
many workers will learn of the program via packages sent through
the mail.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com
248.204.5532 (w)
248.217.7648 (m)
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