White-collar cuts at G.M.

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."

GM losses and buyouts continue

After losing $722 million in the fourth quarter, General Motors announces buyouts for all 74,000 union workers.

“Despite progress and buoyant markets outside the U.S., falling volumes and competitive pressures in the U.S. will continue to pressure G.M. North America and hence overall G.M. operational results,” Brian A. Johnson, an analyst with Lehman Brothers, wrote in a note to clients Tuesday.

The Wall Street Journal has details of the UAW-approved buyout offer:

This new buyout offer is different in that it is designed to open the door for a flood of new workers that GM has said it will hire following its recently inked contract with the UAW. Currently, workers at GM plants typically make $73 an hour, including wages and benefits, no matter what role they fill. The UAW is allowing GM to reclassify about 16,000 of these jobs, such as janitorial jobs, as "non-core" assignments with wages and benefits equaling $25.65 an hour.

GM offers more buyouts, followed by lower wages

GM plans to offer retirement or buyout deals to 73,000 UAW employees. What's that mean? Lower wages for the workers who follow, according to ABC 12 news:

"Once some opt out, the company plans to replace some workers with those making half what current workers earn."