Black Tuesday

[evok]

It appears the proverbial "it" will hit the fan tomorrow morning, young and old a like at all levels of the org chart will be told to leave.

Select GM 8th level and above managers will be shown the door.

Black Tuesday is designed to shake things up at General Motors.

I am lead to believe that app. 2,700 employees will be let go thougout the organization, including managers this time.

This is not a random firing. Every employee has a number assigned to them.

A lot of this will be kept quiet for fear of potential law suits as a result of GM's actions.

Edited March 27, 2006 by evok

[Croc]

Ohhhhhh...the plot thickens!

[Flybrian]

Will this make the news?

[evok]

Will this make the news?

Most of it has. These moves are precise and surgical.

[VenSeattle]

Very interesting... Will this go unnoticed by Union members/leaders? Or will this bloodletting appease them?

[Guest Josh]

10% from the Tech Center & 10% from the Proving Grounds.

[Olds Guy]

This is not a random firing.  Every employee has a number assigned to them.

Like a ranking? Assigned by whom?

[91z4me]

Like a ranking?  Assigned by whom?

By evok!!!

Hope all our GM friends keep their positions.

[RJB]

I'm on pins and needles. Its very tense around here. People are still trying to be positive but there is that air of cautiousness and fright around, not good! I hope I'm still here because I really don't have a game plan if they say 'see ya' to me personally. Wish me luck!

[Guest Josh]

You will still receive pay plus health benefits for up to 14 months if I remember right.

Not to mention, RJB, I will be at the bar right across from the Tech Center tomorrow where GM employees from the Tech Center hang out if you want to meet up or chat and what not, PM me your # or I'll PM you mine if you want me to just let me know via PM.

The "numbering system" as I've been told has been systematic. Meaning, GM knows who they want to get rid of, and this is just the time to do it.

I said it late last week when somebody asked why Salaried weren't offered a buy-out. It's simple, they can walk in, say "thanks for your work but we don't need you anymore" and *POOF* you're gone.

It's sad.

[daves87rs]

Very sad is all I can say..

[ellives]

Chin up guys. For every door that closes, another opens. Most of us are rooting for GM to find its footing and get back on track. Let's hope this is the worst of it and things will only get better from here.

Good luck!

Very sad is all I can say..

[Robert Hall]

I said it late last week when somebody asked why Salaried weren't offered a buy-out. It's simple, they can walk in, say "thanks for your work but we don't need you anymore" and *POOF* you're gone.

It's sad.

Happens all the time in corporate America...though, in my experience, it's more common for companies to do their layoffs on Fridays. When I worked at MCI/Worldcom, the would always do it on the Friday a week or so before Christmas. People that were staying went to a meeting while an 'Angel of Death' (manager from a different department) wandered around informing the soon-to-be laid off...

[evok]

Not to diminish the affect this has on people lives, but GM has been offering buyouts, incentive packages and laying off contractors for 6 years now. In that time period, GM has reduced their salary and contracted staff as GM consolodated operations by about 20k people using a conservatve estimate. The real number is probably closer to 30k.

This time around it was explained to me that employees were rated over the past year and categorized into bins as to when they would be let go. This is not something recent but has been going on.

GM first had to reduce their contract burden, before targeting their direct staff because of potential legal action if the direct staff was targeted. Though that thread still looms, GM is now targeting under performing and non-essential direct staff as well as managers.

I assure you there is still a lot of dead wood at GM. My hope is that GM targets that dead wood.

Strategically targeting mid-level managers should send a needed wake up call to the organization. This is needed. There still is a disconnect between upper management and the front line troops. Some of the stories I hears are appalling.

Whatever actually transpires and the outcome it is happening as I type this.

[Newbiewar]

Will this make the news?

Straight from MSN home page...

GM to Lay Off Several Hundred Employees

DETROIT (AP) - General Motors Corp., pummeled by falling U.S. sales and billions in losses, said Tuesday it is laying off hundreds of U.S. salaried workers as part of a plan to bring its North American operations back to profitability.

GM spokesman Robert Herta said he couldn't give an exact figure, but said the cuts involve fewer than 500 workers at 30 locations across the United States, including factories and engineering centers.

A cut of just under 500 jobs would represent about 1.3 percent of GM's U.S. salaried work force of 36,000. The world's biggest automaker has said it plans to cut 7 percent of its salaried work force this year, so more cuts are on the way.

GM shares rose 20 cents to $23.13 in morning trading on the New York Stock Exchange.

Dave Kepsel, an engineering manager who spent 26 1/2 years at GM, was among those laid off Tuesday.

"I was told today I no longer have a job with GM," said Kepsel, a 52-year-old from Lake Orion who works at GM's massive technical center in the Detroit suburb of Warren.

Kepsel said he wasn't surprised by the layoffs and thought they might have come sooner because of GM's struggles.

"It's one of those things. It's part of doing business. I don't have any hard feelings," he said.

Kepsel drove away in a Chevrolet Silverado, a company vehicle he'll be allowed to keep for 30 days.

"At least they offered me that and didn't make me walk home or take a taxi," Kepsel said.

Detroit-based GM announced a restructuring plan last fall in the face of mounting losses. Under the plan, GM wants to cut 30,000 U.S. hourly workers and close 12 facilities by 2008. GM lost $10.6 billion in 2005, largely because of declining sales and rising costs in North America.

The layoffs are GM's second major jobs-related announcement in a week. GM on Wednesday said it would offer buyouts to its U.S. hourly workers of between $35,000 and $140,000 as part of the plan to cut its hourly work force. GM currently has 113,000 hourly workers. Salaried workers aren't eligible for those buyouts.

GM's severance packages for salaried workers vary by position and level of experience, but employees generally receive one month of severance pay for each year of service at the automaker up to a maximum of 15 months. They also will continue to receive health benefits and will be eligible for outplacement assistance during that time, Herta said. Salaried workers with company vehicles will be able to keep those vehicles for a period of time.

"We're trying our best to treat these impacted individuals with dignity and respect," Herta said.

GM has been steadily shrinking over the last few years as U.S. demand for its vehicles has fallen. The company had 44,000 salaried workers in 2000. GM reduced its salaried payroll by around 2,000 workers last year.

This is the second round of cuts to GM's white-collar work force this year. The automaker laid off 500 contract employees in January, many of them engineers and designers at its technical center in Warren. Contract employees do work for GM but are employed by another company. Tuesday's layoffs only included GM salaried workers.

[Guest Josh]

Something more that the article doesnt state is the cuts are coming at 30 locations. So, under 500 employees total from 30 different locations.

Also, if cut, the workers will receive a severance package of 1 months salary per year with the company capped out at 15 years. Hope that makes sense.

Also, GM will be helping workers find a new job via a replacement job program.

[evok]

This is not over yet - this is just round 1 for 2006 and more cuts are coming.

[Guest Josh]

This is not over yet - this is just round 1 for 2006 and more cuts are coming.

<{POST_SNAPBACK}>

Right through the end of April, not sure if there are more after that or not.

[thegriffon]

Reportedly this is round 1 of previously announced cuts of around 2700 staff this year, far from the dramatic bloodletting everyone (including the author of this very thread) was predicting. Sure things are bad for GM, but this is nothing that the company hasn't been expecting and preparing-for for years. Part of it is competitive pressure, part is engineering efficiencies, part is GM's new global mindset. H———, with no more US-engineered Ion or Vue (aside from a handful of engineers doing final US-market calibration), that frees up a whole lot of staff who are no longer needed (the best of course will be working on other programs).

[evok]

There are a total of app. 2700 candidates that are marked to be released in the near future. That is the number I have been told.

Edited March 28, 2006 by evok

[Croc]

Good to see GM targeting the midlevel managers...GM's just so big; it's high time for a bit of delayering.

[evok]

Good to see GM targeting the midlevel managers...GM's just so big; it's high time for a bit of delayering.

The 8ths and 9ths managers and directors were this morning.

The 6ths and 7ths appear to be this afternoon.

I was told there were taxi cabs out front at the GM facilities to take the managers home after they drop off their cars and were given the news.

Some whole groups were completely wiped from the org chart.

[FUTURE_OF_GM]

So I guess this is a good thing (For GM anyway)?

I'll admit I don't know much about it.

Is it good that we're scaling back engineers when SO much product needs to be flawlessly executed?

[nightwave]

My understanding was not engineers, but desk jockeys. I could be wrong, though.

[Guest Josh]

Not to mention, everybody that is/was let go does not have to turn their vehicles in. They get to use them for as much as a few weeks.

[Newbiewar]

My understanding was not engineers, but desk jockeys.  I could be wrong, though.

you mean bean counters?

[turbo200]

this is good. GM is way too large for its own good. More direct communication and simpler buidling steps are required to get the right product launches out. Those that are being targeted have the qualifications to find work elsewhere. I am so glad GM has recognized the potential of global programs done the right way.

[Drew Dowdell]

This is bound to happen as greater globalization of GM happens. They are consolidating platforms so much but still keeping fairly different brand "feel". As things get consolidated they need less people.

10 years ago they had:

A, B, C, D, E, F, G, H, J, K, N, U, W, Y, Z in just the car Bodies

Now they have Delta, Epsilon, Kappa, G/K, Sigma, Theta, U, W, Y

U and W are being dropped and being replaced with Lamda and Zeta<supposedly>.

G/K is probably in it's final generation.

GM has moved from 15 car platforms to 9 while keeping up a fairly decent lineup. Sure Buick and Pontiac are a little starved right now, but as the Zeta and Epsilon II move in to replace W-bodies and G/K bodies those holes will be filled.

6 less entire car platforms definately warrent some layoffs.

I feel bad for the people who are being let go, but I think this is a needed move for GM even if it were making money.

[Sixty8panther]

I never rejoyce at fellow Americans loosing their jobs.

That being said I hope this is a turning point and things start to look up for GM, RWD enthusiasts, "traditional" car fans of all ages & esp. us Muscle Car fanatics!

[MGZ06]

I was told there were taxi cabs out front at the GM facilities to take the managers home after they drop off their cars and were given the news.

Employee's have untill April 30th to return vehicles. . . all laptops are to be in GM's possession effective today. This is truly a sad day for GM's tech center, but it's the only way to survive in todays market.

[bdubsee]

My thoughts go out to those who are losing their jobs. I once worked at the General and I was let go in 2002 (though I was only a contract employee - a yellow badge). I was so miserable. Just remember that even though the first days/months will be dark, you'll probably come out much better in the long run. Think of it as more of an opportunity than a loss.

Edited March 29, 2006 by bdubsee

[thegriffon]

The negative press and concerns about bankruptcy are breeding paranoia. The 2700 figure is derived from the previously announced reduction of around 7% of salaried staff. Clearly more are to come. The gist of the recent speculation elsewhere however, was that GM would announce new additional layoffs on a much greater scale, which clearly is not happening. All they are doing is telling the first people they're the ones who'll be going. I wonder how many are expatriates?

[RJB]

Well its not over. The new rumor is next week April 3rd there will be more dumpings going on. So that means my department may be hit so I guess I'm in the running. Oh yay!

Edited March 29, 2006 by RJB

[Guest Josh]

It's white collared employees paid directly by the companies. From what I understand this next round of cuts does not include contract workers as this last round did not either.

[MGZ06]

RJB- I know how you feel! I waited for weeks after the first round of layoffs when I was let go 3 years ago. . . but I must say leaving the auto industry for good has been the best move Ive ever made.

[RJB]

According to our resident on staff engineer this is going to happen and possibly to "us". This engineer always seems to be in the know. I have not payed attention to the track record of the engineers info so I don't know how on they are. No one will be safe is the last thing that was said.

[Guest buickman]

I know one useless employee that needs to be cut.

[bdubsee]

It's white collared employees paid directly by the companies. From what I understand this next round of cuts does not include contract workers as this last round did not either.

In the name of accuracy, I can't see where anyone suggested that contract workers were being let go. My post was about empathy with those being let go - it just happens that I was a contract employee.

[Stiltz]

but I must say leaving the auto industry for good has been the best move Ive ever made.

Why is it that I never hear anyone say leaving the automotive industry was the worst move they have ever made? SE Michigan is in big trouble.

[ShadowDog]

Unfortunately, nobody should have been able to say this came as a complete surprise...that is, unless their head was in the sand. I'm trying to be optimistic throughout all news of pending doom and gloom; however, I've also continued to review the situation (only as I know it) to conclude that it will get worse before it gets better.

It will get better in the long run; however, there's still a hole to dig. This just had to happen. I would only start to worry more if factories start to reduce their employee capacity further. Reducing production is never a good sign.

[evok]

I know one useless employee that needs to be cut.

Why did Patsy Lou Williamson want to cut your commission?

[evok]

Unfortunately, nobody should have been able to say this came as a complete surprise...that is, unless their head was in the sand.  I'm trying to be optimistic throughout all news of pending doom and gloom; however, I've also continued to review the situation (only as I know it) to conclude that it will get worse before it gets better.

It will get better in the long run; however, there's still a hole to dig.  This just had to happen.  I would only start to worry more if factories start to reduce their employee capacity further.  Reducing production is never a good sign.

This has been going on for years now - because of GMs current situation the press has latched onto the story.

http://detnews.com/apps/pbcs.dll/article?A.../603290389/1148

Edited March 29, 2006 by evok

[Guest buickman]

Why did Patsy Lou Williamson want to cut your commission?

<{POST_SNAPBACK}>

Don't know where you are getting your information. Mr and Mrs Williamson and I have a good relationship. Working for them in 1990 when they purchased the previous Blain Buick, I rose to the number one Buick salesman in the country and did so many times again. Furthermore, after leaving in 1997 to start a Real Estate company, I was contracted back in 2002 to rebuild sales. The store has since returned to it's previous glory as top Buick store in the USA. Patsy Lou paid me a lot of money for my efforts and we remain as friends.

Guess Again Wagonerman

Buickman

Edited March 29, 2006 by buickman

[bdubsee]

Don't know where you are getting your information. Mr and Mrs Williamson and I have a good relationship. Working for them in 1990 when they purchased the previous Blain Buick, I rose to the number one Buick salesman in the country and did so many times again. Furthermore, after leaving in 1997 to start a Real Estate company, I was contracted back in 2002 to rebuild sales. The store has since returned to it's previous glory as top Buick store in the USA. Patsy Lou paid me a lot of money for my efforts and we remain as friends.

Guess Again Wagonerman

Buickman

I wouldn't boast about having a good relationship with Don Williamson. He is a shady character with a questionable (and criminal) history. He bought the mayorship of Flint for his personal gain and to feed his enormous ego by selling desperate people a bill of goods. The fact that you count him as a friend speaks volumes about your character. Perhaps this grandiose sense of self is what you two have in common?

BTW - You may want to work with your friend Don on how to run his company:

http://www.mlive.com/news/fljournal/index....0590.xml&coll=5. I think he is finding (like you will) that being successful on a small stage such as Flint/Genesee County doesn't make you a big time player no matter how many times you proclaim it.

Edited March 29, 2006 by bdubsee

[FAPTurbo]

I know one useless employee that needs to be cut.

Lemme guess... it's the foreign janitor "Tibor" isn't it!?...

I mean, who ELSE could it be?...

[evok]

I wouldn't boast about having a good relationship with Don Williamson.  He is a shady character with a questionable (and criminal) history.  He bought the mayorship of Flint for his personal gain and to feed his enormous ego by selling desperate people a bill of goods.  The fact that you count him as a friend speaks volumes about your character.  Perhaps this grandiose sense of self is what you two have in common?

BTW - You may want to work with your friend Don on how to run his company:

http://www.mlive.com/news/fljournal/index....0590.xml&coll=5.  I think he is finding (like you will) that being successful on a small stage such as Flint/Genesee County doesn't make you a big time player no matter how many times you proclaim it.

Kudos - That is the reason why the dealership is in Don's wife's name. Don has a history even prior to the Mt. Morris sporting complex scandal.

Don't let the BM fool anyone - PLW wanted to cut the BMs commission. The question is why? And I do aim to find that out.

Maybe the BM was padding his own pocket and PLW caught on? Maybe the BM was selling cars at a loss and PLW had to cut his commssion to make up the difference. Maybe the BM was booking false sales?

This is getting interesting.

Edited March 29, 2006 by evok

[toesuf94]

Lemme guess... it's the foreign janitor "Tibor" isn't it!?...

I mean, who ELSE could it be?... 

GREAT SIMSON'S QUOTE!!! HA HA HA HA HA...That one got me laughing!

[toesuf94]

and by the way - this thread has denegrated to trying to figure out a political/business scandal instead of offering the sympathy to the GM employees that have now lost thier jobs.

Buickman: If you are an evil person, or dealing with one...so be it - people leave everyone alone and let's get back to the topic at hand.

[Guest buickman]

Kudos - That is the reason why the dealership is in Don's wife's name.  Don has a history even prior to the Mt. Morris sporting complex scandal. 

Don't let the BM fool anyone - PLW wanted to cut the BMs commission.  The question is why?  And I do aim to find that out.

Maybe the BM was padding his own pocket and PLW caught on?  Maybe the BM was selling cars at a loss and PLW had to cut his commssion to make up the difference.  Maybe the BM was booking false sales?

This is getting interesting.

<{POST_SNAPBACK}>

I said I have a good relationship with Mr and Mrs Williamson and that Patsy Lou and I remain as friends. I did assist Mr Williamson in becoming Mayor of Flint. Today the budget is balanced, the city streets have been paved, the trash and debris largely removed, and the State has relinquished control back to the people of Flint and their ELECTED Mayor.

As to my compensation, it has always been on commission and an "At Will" relationship. Save the unsubstantiated claims and face the fact that I know how to sell cars.

Buickman

[usa1]

Well I hope GM targeted the poor performing employees with this layoffs and I hope they eliminate many layers of management. If these two things happen, GM will be better off. Let's hope GM put some good thought into this.

Mark