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Let me know when Toyota has to do this and we can all get rich shorting the stock as Toyota goes bankrupt
GM offers workers up to $140K to leave
Severance packages available to 113,000 workers; deal also reached with Delphi to avoid labor dispute.
March 22, 2006: 9:47 AM EST
NEW YORK (CNNMoney.com) - Embattled General Motors Corp. said Wednesday it will offer its hourly workers as much as $140,000 each to leave the company as part of its cost-cutting efforts.
The offer, which is being made to all 113,000 hourly employees in North America, is confirmed by a source familiar with terms of the offer. Those accepting that lump sum will not get the retiree health care coverage that has become a crippling burden for the automaker.
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Goal for 2008: Half as many penalties.
Let me know when Toyota has to do this and we can all get rich shorting the stock as Toyota goes bankrupt
GM offers workers up to $140K to leave
Severance packages available to 113,000 workers; deal also reached with Delphi to avoid labor dispute.
March 22, 2006: 9:47 AM EST
NEW YORK (CNNMoney.com) - Embattled General Motors Corp. said Wednesday it will offer its hourly workers as much as $140,000 each to leave the company as part of its cost-cutting efforts.
The offer, which is being made to all 113,000 hourly employees in North America, is confirmed by a source familiar with terms of the offer. Those accepting that lump sum will not get the retiree health care coverage that has become a crippling burden for the automaker.
I wonder how many of those that got the offer are very near retirement already... If I were a young worker, I would consider it, but if retirement is say, 1 or 2 years away, that amount of $$$ is simply not worth it, especially since after taxes the individual would se about $85,000...
Delphi, GM Offers Get Mixed Reception By KATHY BARKS HOFFMAN, Associated Press Writer
1 hour, 20 minutes ago
LANSING, Mich. - Buyout deals being offered to UAW members at General Motors Corp. and auto parts supplier Delphi Corp. are getting a favorable reception from some workers.
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Chris "Tiny" Sherwood of United Auto Workers Local 652, which represents GM workers in some Lansing-area plants, said members were calling union headquarters by late morning to say they plan to take the buyout.
But Bob Tyrrell of Norman, Okla., doesn't want the deal. He has worked the second shift at the GM plant in Oklahoma City since 1979 and said he was more interested in having a good job.
Tyrrell, 45, had planned to retire in 2009 after 30 years of employment with the automaker.
"Cash doesn't really help me," he said. "Potentially I could live 30 years. We'd rather be working than waiting. I don't want to sit around and collect welfare. Money for nothing is not my way of life. I want to work. Most of us want to work.
About 100,000 hourly GM workers will be eligible for payouts of between $35,000 and $140,000 depending on their years of service and whether they want to keep retirement benefits such as health care coverage.
At Delphi, which filed for bankruptcy protection from its creditors in October, up to 5,000 workers will be eligible to return to GM, Delphi's former parent company, while 13,000 U.S. hourly workers will be eligible for a lump sum payment of up to $35,000 to retire. Delphi has about 34,000 U.S. hourly workers.
At a Delphi plant in Anderson, Ind., one worker said he's considering the buyout.
"I'm going to take a really hard look at it because at my age and years of service. I've been contemplating retirement, so this might be the time to do it," Estes Boles, a Delphi worker for 39 years in Anderson and bargaining chairman for UAW Local 662, told WISH-TV.
Under the plan, GM and Delphi workers will be eligible for payouts of $35,000 for normal or early voluntary retirements retroactive to Oct. 1, 2005. The deal applies to workers who are at least 50 years of age and have 10 years or more of credited service.
GM employees with at least 10 years' experience can take a one-time $140,000 buyout to sever all ties to GM and Delphi, including health care coverage and other post-retirement benefits. Vested pension benefits would not be affected.
GM employees with fewer than 10 years' experience could take a one-time $70,000 buyout to accept the same deal.
GM's plan doesn't require approval, and company spokesman Dan Flores said retirements could begin as early as June 1. Salaried workers won't be eligible for the early retirement offers. Delphi's plan must be approved by a bankruptcy court.
Offer paltry sums of money that--in the short term--look like a deal, but when the workers gets past the lure of cash, they should be able to see that its a total stiff job. That money will be dried up in no time, while they are left high and dry in later years.
These people have a choice, but this is not a good deal.
Of course LIAC. GM KNOWS it cant pay all the pensions about to occur when the baby boomers retire. They WILL (100%) go bankrupt. Then NO ONE gets a pension. Is that a better scenerio?
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Goal for 2008: Half as many penalties.
Of course LIAC. GM KNOWS it cant pay all the pensions about to occur when the baby boomers retire. They WILL (100%) go bankrupt. Then NO ONE gets a pension. Is that a better scenerio?
HOw about the execs cut their salaries back a little? I am sure they have multi million dollar severence packages regardless ii the company files for 'bankruptcy or not.
Maybe the company should handle their investments better to avoid welching on their promises...
HOw about the execs cut their salaries back a little? I am sure they have multi million dollar severence packages regardless ii the company files for 'bankruptcy or not.
Maybe the company should handle their investments better to avoid welching on their promises...
You are so dang funny!! Corporate America show some responsibility...wow...I'm crying right now...
HOw about the execs cut their salaries back a little? I am sure they have multi million dollar severence packages regardless ii the company files for 'bankruptcy or not.
...
You do realise we are talking on the scale of tens of billions right..not millions. You do understand that. You also of course undertsand that it is finacially impossible to pay so many people (baby boomer) on union retirement promises.
Same with social security. Its great but no one thought about a scenerio when half the population would retire at once.
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Goal for 2008: Half as many penalties.
You do realise we are talking on the scale of tens of billions right..not millions. You do understand that. You also of course undertsand that it is finacially impossible to pay so many people (baby boomer) on union retirement promises.
Same with social security. Its great but no one thought about a scenerio when half the population would retire at once.
I own a small business, we offer a 401k, which is different than a pension, and really I've never understood why.
We have to fully fund the 401k immediately, if these giant corporations had done the same thing from the beginning none of this would be a problem but allowing a corporation, any corporation to issue IOU's for pensions is in itself an insane idea.
I'm always amazed at the level of just pure incompetence when it comes to money, if you allow any entity to get off cheap, most will so you can't allow it.
There should have been laws decades ago that said you must at all times fully fund a pension and remove it from your balance sheet, depositing it with a third party management company.
I guess people never thought something like GM could go under, well it will and so will Ford most likely.
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At what point then is the approach of danger to be expected? I answer, if it ever reach us, it must spring up amongst us. It cannot come from abroad. If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide.
I own a small business, we offer a 401k, which is different than a pension, and really I've never understood why.
We have to fully fund the 401k immediately, if these giant corporations had done the same thing from the beginning none of this would be a problem but allowing a corporation, any corporation to issue IOU's for pensions is in itself an insane idea.
I'm always amazed at the level of just pure incompetence when it comes to money, if you allow any entity to get off cheap, most will so you can't allow it.
There should have been laws decades ago that said you must at all times fully fund a pension and remove it from your balance sheet, depositing it with a third party management company.
I guess people never thought something like GM could go under, well it will and so will Ford most likely.
Absolutely agree. As contractors with pension and health and welfare funds in a union environment, we are required to keep those funds stable and able to fund their requirements and have to prove that up on a yearly basis. If there isn't enough money in the fund, the contractors are obligated to come up with the additional out of their own pockets.
Why do small businesses have this requirement and large corporations do not? Poor planning and lousy politics.
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“So I became a newspaperman. I hated to do it but I couldn’t find honest employment.” —Mark Twain
Absolutely agree. As contractors with pension and health and welfare funds in a union environment, we are required to keep those funds stable and able to fund their requirements and have to prove that up on a yearly basis. If there isn't enough money in the fund, the contractors are obligated to come up with the additional out of their own pockets.
Why do small businesses have this requirement and large corporations do not? Poor planning and lousy politics.
Because big Corps are in the pockets of gov't and vice versa...
Its all BS and these companies are stealing from their workers IMO...
Because big Corps are in the pockets of gov't and vice versa...
Its all BS and these companies are stealing from their workers IMO...
I don't think they set out to steal, they just need to meet Wall Street expectations and so, when it gets down to the nitty gritty instead of fully funding the pensions they take the path of least resistance.
Corporations aren't evil or good, they are really by definition an artificial entity.
What's needed is a good set of rules or the road, not name calling.
I do agree though that currently the system encourages them to work it and it ends up costing the workers, workers at times can be treated just like commodities and do get shafted.
The problem I have with your line of thinking though is that we do not control the whole world and as such the American worker needs to take a look out of his own gofer hole and realize that as bad as it may be here, it's infinitely worse every where else and that if he or she isn't careful there won't be a job to bitch about.
__________________
At what point then is the approach of danger to be expected? I answer, if it ever reach us, it must spring up amongst us. It cannot come from abroad. If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide.
This is a raw deal for older workers!!
dreamcastrocks--My Hero!!
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