Nick Bunkley and Bill Vlasic of The New York Times report:
"General Motors said Tuesday that it would reduce labor costs for salaried workers by 20 percent, eliminate its quarterly dividend and further reduce truck production to ensure that it has enough cash to finance its turnaround for at least two more years.
"The moves are expected to raise about $15 billion by the end of 2009, the chief executive Rick Wagoner said in an address to employees.
"Mr. Wagoner said the automaker would also stop providing health care coverage to salaried retirees at age 65, offer buyout and early retirement packages to reduce its salaried work force and freeze base pay for salaried employees through 2009."
How does Rick W still have a job???ReplyDelete
Layoff workers, cut benefits, lower costs...and stockholders love it. He'll probably get a bonus for this.ReplyDelete
I feel for the GM white collar retirees over 65 who are going to lose their health benefits, although they have been promised an allowance in their pension to offset the cost of healthcare they will have to pay for.ReplyDelete
The moral of the story is this: General Motors employees (UAW workers and white-collar employees alike) have had it too good for too long. Now the truth of the matter comes to a head.
Flint, Michigan, the birthplace of General Motors, is barely surviving on life support...