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GM cutting 5,000 more salaried jobs by end of 2008

07/31/2008, 8:35 AM

By paulee

General Motors confirmed rumors of a plan to cut its white collar workforce by nearly 15 percent or some 5,000 employees as a way to help the struggling automaker save $10 billion in operating costs by the end of 2009.


The job cuts will be made via early retirement offers, to be sent out to the salaried employees by August, and a decision deadline of September or October, says a Detroit News report. The unnamed spokesperson also made it clear that some departments will see larger cuts than others.
Other measures the auto giant is taking to trim costs include stopping retirement health benefits coverage for employees over 65 as of January 1, 2009 as well as not giving pay raises to white collar workers until the end of 2009.

The company will use its bloated pension plan to buy out early retirement workers, with 40 employees in the media relations department getting the offer, with a plan to pare it down by 17 jobs.

Since 2000, GM has cut 12,000 of its salaried workers, which makes this 5,000 employee cut in just one year a significant one.

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07/31, 8:57 AM

posted by:

xyunya

Those are interesting news. Couple of months GM was celebrating restoration of full salary package for Wagoner and Lutz. So 5,000 schmucks will get pink Christmas cards and management will be properly compensated for stellar performance with year end bonuses and stock options (thanks Lord they are worthless even for them).

07/31, 9:01 AM

posted by:

HemiRoadRunner

Yep, and everyone wonders why GM needs unions.

07/31, 9:48 AM

posted by:

Nightblack_97

—Hemiroadrunner
What do you mean Gm needs unions!?! That’s what got them here in the first place. You can’t be competitive if you have to pay your high school graduate production line workers $30-$40 per hour with full medical benefits and pensions. Most of them didn’t even go to college. Heck, some immigrants would love to work indoors for like $10 an hour. They are very hard workers and committed.
Unless you can explain why this crisis was just a fluke and how another run with the unions is going to help Gm….. I’m going to be very worried about you.

07/31, 10:02 AM

posted by:

shaver

Niteblaq: Why even bother with immigrants at $10. If “being competetive” is all that matters, then every auto (or anything other mfg) shoud be done in 3rd world countries at a max of $1/hr. Why not just import laborers to all are dirty work. Take it from someone from so cal, those immigrants kids are not working for $10/hr or even $20/hr.

07/31, 10:11 AM

posted by:

xyunya

Nightblack_97, I am not fan of HRR, but GM and Ford plus whole slew of other manufacturers called unions upon themselves by being total scam bags. I don’t like unions, but they were necessities in 20’s and 30’s and with GM-Ford management attitude they maybe necessities today.
Yes, unions are expensive fork force, but management is much more expensive and much less productive. Board members like to explain to press how much unions cost per vehicle, well that’s how we know it is $1,500. How much management cost per each Hummer, Aztec, Flex, Magnum produced? Have you seen domestic car lots lately? By comparison take a look at “asians”, that mostly made in US. Domestics are overflowing with monster trucks, SUVs, CUV’s and all other other kind of construction machinery. There is some on Toyota, Nissan and Honda lots; but you can’t compare the volume and amount of space domestics take. Another example is profits, or shall we say losses. GM is at 40-50 year low. Honda all time high. Blame it on unions.

07/31, 10:46 AM

posted by:

HemiRoadRunner

No, what got GM where they are is piss poor management. They cut jobs and workers salaries without cutting their own. Instead they increase theirs! Unions do a good job at keeping management in line, that’s all I’ll say for now on that. These old geisers at GM build BORING @$$ cars and that’s their problem. Where’s the value for what you pay for your vehicle? The only value I see is it pays some Americans a paycheck, which I totally am for.

07/31, 11:02 AM

posted by:

beatusmongous

@$$ cars? They build cars for your @$$?

07/31, 11:27 AM

posted by:

BuyAmericanOrLeave

@Xyunya@ you have no idea what your talking about, and you most likely take it deep.

07/31, 11:41 AM

posted by:

jumpoffit

man i’m getting images of Q-bert with all the @$#%^*&! symbols going around

07/31, 11:50 AM

posted by:

beatusmongous

@$#%^*&! you, Jumpoffit! You are such a @$#%^*&!, you @$#%^*&!@$#%^*&!@$#%^*&!@$#%^*&!

07/31, 12:00 PM

posted by:

johnnycanuck

GM spent the better part of the last 3 decades in a state of constipation and now the big dump is in full swing, but it’s going to take more than one flush to clean up this mess. Unfortunately, the two biggest turds are right at the top and nothing short of a full blown corporate enema is going to get rid of them.

07/31, 12:15 PM

posted by:

howsmydriving

The 5,000 workers will soon be hired back, because everyone in America is as fascinated by the new Camaro as I am.

07/31, 12:19 PM

posted by:

BuyAmericanOrLeave

did that on purpose. I actually know *Xyunya* aka Michael in real life, and hes a fat unemployed loser.Who has a BF by the way, for all you LLN bloggers that dont know. So it bothers me that this flamer is behind a computer in OUR country bashing anyone who supports american. It seem that hes the first to complain about gas prices and hes driving a rice rocket. That flamer can eat a d*ck. He sits home all day in his mothers house and stares at his computer for hours. His sister is my best friend. Everytime i go over there hes running his fat mouth on forums. Im sick of it. Sorry for the hate, i just dont agree with hypocrits.He can eat a d*ck. Wait he already does :X

07/31, 12:20 PM

posted by:

ktulu

we a;ll nee unions

07/31, 12:28 PM

posted by:

BuyAmericanOrLeave

Whats the matter #XYUNYA# buisy playing with your boyfriend d*C*. FLamer come back on and defend yourself. You almost make me feel bad.

07/31, 1:50 PM

posted by:

HemiRoadRunner

I use to like Q-bert on ColecoVision. I also liked Congo Bongo, Popeye and Gorf. Xyunya, what ever that name means anyway, said he made some “wise investments” and became independantly wealthy and is a retired Air Force dude. So what is this guy really? Because he always turns anything you say into something gay sounding.

07/31, 1:59 PM

posted by:

Nightblack_97

—HRR
I agree that the management needs to be kept in check. But surely it can be done some other way. Unions have and will continue to force American car companies to offer inferior products because they are spending their money on those workers. See Honda with any unions lately?
—Xyunya
I don’t quite understand. I am for the removal of unions and you agree that they were causing a problem? Anyway, HRR was right. Wagner/Lutz salaries could easily be cut but that’s really not the problem. A couple hundred grand a year to those guys isn’t going to break the company. Let the free market get back to work, and watch American democracy retake the auto industry. restrictions on trade have always benefitted one group but caused an even greater problem with the overall economy. Remember the depression and subsidys?

07/31, 2:05 PM

posted by:

BuyAmericanOrLeave

Retired? Investments????????????? aka living off his mom, 22 years old unemployed. How do you retire when you’ve been jobless for the last 2 years? I think its impossible. Everything XYUNYA stated aka michael, are things he dreams of doing. He almost 400lbs and g@y, and sits infront of a computer prob 17 out of 24 hrs a day, and thats no joke. Everytime im over there hes hovered over his computer like its his job to guard it. Total flamer and his posts are bs. I would of never

07/31, 3:14 PM

posted by:

WEKS

No one is buying it BuyAmerican, now stop your flame baiting or gtfo.

07/31, 4:23 PM

posted by:

BuyAmericanOrLeave

Buying what weks? its the truth you retard. I would not waste my time like you flamers to spit anything but the truth. Keep believing his bologna. You might convince you that aliens are coming to steal your brain.

07/31, 4:34 PM

posted by:

BuyAmericanOrLeave

What i also find funny. All these new users are starting to pop up out of no where.Defending Xyunya aka Michael. Good job mikey we might of bought it, you just made one to many new names.

 
 
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