GM moves up payments to employees, suppliers in light of pending bankruptcy
05/28/2009, 10:04 AM
By Drew Johnson
In a bid to quell worker concerns over bankruptcy, General Motors paid more than 90,000 employees three days early this week. Employees were slated to receive their paychecks on Friday but GM decided to hand them out on Tuesday.
General Motors will likely be forced into bankruptcy as soon as next week, with the latest move intended to easy some of the fears of the pending Chapter 11 filing. “It was done to reassure employees worried about bankruptcy,” GM spokesman Tom Wilkinson told Automotive News.
Wilkinson added a bankruptcy filing wouldn’t affect the company’s payroll payments.
Additionally, GM has moved up payments to some 1,500 suppliers to today. Those suppliers were scheduled to receive payment on June 2nd – likely the first day of the automaker’s bankruptcy.
GM was hoping to sidestep a Chapter 11 filing but a recently failed debt-for-equity swap likely sealed the Detroit automaker’s fate. GM needed bondholders to agree to give up 90 percent of the company’s debt in exchange for a 10 percent stake in the future company but reportedly fell well short of that mark.
05/28, 10:14 AM
posted by:
freeyellow2000
Well we all knew the GM would file for bankruptcy…that was a given….
GM has the mind set of the Titanic… Even though they are “largest corporations” they though they couldn’t fail. In the end its is all GM fault, management has no one to blame except for themselves. The only reason politication intervene is just they worry about the job (ie $$$$$$$$$$)
05/28, 10:16 AM
posted by:
mayer_ray_nagin
Cool. I’d call in sick now if I worked there. Since “we’re all söciälists now” under our idiot prez nobody expects us to do anything but loaf off anyway.
05/28, 10:42 AM
posted by:
Borat
And before anybody was slaving in this company?
05/28, 10:55 AM
posted by:
fan
good for the workers… at least some of the money is going back to where it came from… the taxpayer (well, at least to a part of the taxpayers)
05/28, 11:14 AM
posted by:
Borat
fan, it is very same workers that robbed their investors of ALL investments. I hate to mention that owners of the company lost their behinds and walking out with shares which are now called worthless memorabilia. Farrah Fawcett posters are valued more at this point.
05/28, 11:19 AM
posted by:
JakeK66
Look at that lady in the pic with a big stupid grin on her face. Yea! I’m gonna be out of work!
05/28, 12:14 PM
posted by:
dakotakid
Hope they all cash those cheques QUICK…
05/28, 12:35 PM
posted by:
Payton Byrd
@freeyellow2000
You clearly don’t have a grasp of the situation. GM and Chrysler (and the entire industry for that matter) are in this mess because of hugely inflated wages and benefits for union workers and absolutely outrageous demands from Congress over the last 40 years. It’s a miracle this didn’t happen 20 years ago. Oh, wait, it did with Chrysler and AMC. But, Chrysler will get out of another bankruptcy via government loans and merging with another company, just as during the 80’s. Hopefully we’re not here again in another 20 some odd years.
05/28, 2:59 PM
posted by:
Dwide Schrude
Are those beach balls being bounced around in the picture? What is wrong with these people?
05/28, 3:53 PM
posted by:
Borat
@Payton Byrd,
I think your explanation of reality is either misguided or shallow (your choice). Neither government nor unions dictated either GM or Chrysler to build obese behemoths on old platforms that fell out of favor once oil price went above $3/gallon. Nor it was mandated by either government or unions to spend time and money producing such winners as Aztec, latest Monte Carlo, Sebring, G6, whatever else fills up docks and dealer’s lots. Chrysler survived 80’s with help of nation and unions, but most importantly Chrysler was guided by management team that knew what they were doing and why there were doing it. Today’s management or Auto giants looked very uncomfortable on camera when they were offered the same salary as Lee Iaccoca took voluntarily ($1).
Your knowledge of recent history somewhat skewed as well. Chrysler did not merge with another company; Chrysler did buy another company – AMC. They couldn’t afford that load of bad inventory, bad labor contracts and horrible vehicles and plants. Request for loans came after, not before or during merger.
I am not an advocate for unions either. They are corrupt and lazy. Therefore, there is nothing here to save: companies have no management backbone nor dedicated work force. How’s government suppose to fix it? Is government suppose to fix it?