GM: Hey UAW We Want 20,000 More Buyouts.

[Guest Josh]

Massive downsizing plan would impact idled GM workers, help Delphi recover from bankruptcy.

General Motors Corp. and the United Auto Workers are in advanced talks on buyout offers for up to 20,000 hourly employees, setting the stage for the biggest exodus of union workers in recent memory.

The massive buyout plan would clear the way for GM to absorb the "flowback" of thousands of idled UAW workers in the automaker's "jobs bank" as well as former GM employees on the payroll of bankrupt Delphi Corp.

The negotiations on buyouts are integral to GM's planned downsizing of its U.S. manufacturing operations and the emergence of Delphi, its largest supplier, from bankruptcy, according to people familiar with the matter.

Talks shifted into a higher gear last week as GM identified an estimated 37,000 workers -- virtually an entire generation of UAW workers -- in its vast network of plants that are eligible for retirement.

Details of the daily negotiations between GM, the UAW and Delphi have been closely guarded, with none of the sides willing to publicly discuss the number of buyouts on the table or the financial breakdown of possible buyout packages.

But GM Chairman Rick Wagoner has repeatedly said that "accelerated attrition" of older workers is a top priority as GM seeks to shed 30,000 factory jobs by 2008 and become profitable again.

"This could be the biggest buyout in memory and a turning point in the history of the industry," said Harley Shaiken, an international labor specialist at the University of California-Berkeley.

The UAW has told leaders of its GM locals to be prepared to meet next month in Las Vegas to possibly review details of buyout offers to be presented to rank-and-file workers.

Complete Story: http://detnews.com/apps/pbcs.dll/article?A...UTO01/603050391

My Take? General Motors is doing a more of "right now or never" buy-out for current employees.

The company is in bad shape and wants to take a major, billion dollar hit this year (2006) to make things look worse than they really are.

General Motors knows what is happening here, but is letting it go by with little action while it increases output overseas and focuses on China/Asia.

[Guest Josh]

Furthermore, the brunt of the hit seems to be coming from Delphi which should not be happening. Delphi Employees had the chance years ago when the company was spun off to either head back to GM plants or stick with Delphi. They chose to stick with the easier auto parts supplier.

I say, off 'em. They made their bed. Let them lay in it. Do not punish the new wave of GM that cares about the business by making us wait for a job.

[regfootball]

HOLY F*CK. wow. that will be a lot of cash tossed out there..........

[Newbiewar]

yea i think that was a 3.6 billion dollar hit on GM in the 4th quarter of 05... what will it be this quarter?

GM ought to be crying to uncle sam... Buy outs...? well Japan does it... should we move our operations to japan

[Newbiewar]

How much money is involved in these buy-outs? What kind of hit is the worker going to take with a buy-out vs. keep working?

"A look at retirement and separation offers from Detroit automakers:

Under a longtime agreement with the UAW, factory workers at GM, Ford Motor Co. and the Chrysler Group with 30 or more years of service can retire with full benefits.

When Chrysler sold a New Castle, Ind., parts plant to Metaldyne in 2004, workers had several choices: Stay on as Metaldyne employees at $16 an hour, enter Chrysler's Indiana jobs bank, enter Chrysler's national jobs bank, or accept a buyout and leave the company. Under the buyout, Chrysler paid $75,000 to $100,000 to each worker, depending on years of service and other factors.

Ford is offering buyouts of $100,000 to workers in Lorain, Ohio, and Edison, N.J., who lose their jobs to plant closings if they agree to give up all benefits except pensions. Aside from the $100,000 buyout, offers include a tuition reimbursement program, two early retirement programs and a preretirement leave program for those just short of the 30 years needed to retire.

In the early 1990s, GM offered early retirement and separation programs to workers idled as a result of plant closings and production cutbacks in Van Nuys, Calif.; North Tarrytown, N.Y.; Wilmington, Del.; and Ypsilanti. One option allowed retirees to collect a full pension and still work full time at another job without having their GM benefits reduced. GM also gave those retirees a $10,000 voucher toward the purchase of a new GM vehicle and up to $4,000 for taxes and registration fees. Workers who agreed not to earn more than $15,500 a year at another job were offered a $15,000 voucher toward a new car, plus $6,000 for taxes and license fees. Workers who did not qualify for retirement were offered up to $100,000 to leave GM voluntarily. "

soo... 20,000 employees... 100k a peice... we're talking 2 billion dollars

[Ghost Dog]

The Germans GM bought out last year got $250,000 each.