4LT GS RoadsterGeneral Motors Corp. started firing white-collar workers today with about 160 pink slips handed out to engineers and support staff at the automaker's Warren Technical Center.
The firings are part of GM's broad restructuring plan, which is designed to make the automaker a viable company and comply with a $13.4 billion federal loan package. GM has asked for up to $16.6 billion in additional aid and faces a March 31 deadline to show progress on reaching money-saving concessions from labor and lenders.
Workers in GM's manufacturing engineering area were notified today and must leave by April 1, spokesman Tom Wilkinson said.
"These are talented and capable people and it was very difficult for GM and very difficult for the employees," Wilkinson said. "But the reductions are necessary to implement the viability plan and make the business self-sustaining in the long term."
GM's viability plan includes eliminating 47,000 jobs worldwide, closing 14 plants in the next three years and selling, shrinking or killing its Saturn, Hummer, Pontiac and Saab brands.
The automaker will eliminate 3,400 white-collar jobs this year and 18,000 hourly jobs in the U.S. by the end of the year, Wilkinson said.
The white-collar workers get a half-month's severance pay for each year of service up to six months. The severance includes base salary plus GM contributions for health, dental, vision and life-insurance coverage.
The white-collar firings come on the same day United Auto Workers face a deadline to accept early-retirement and buyout offers.
The automaker is trying to thin its ranks by offering eligible workers a $25,000 voucher for a new GM vehicle and $20,000 in cash.
GM would like to see at least half of the 22,000 retirement eligible workers leave. The offers apply to all of its 62,000 hourly workers.
DN Auto Insider Article
The firings are part of GM's broad restructuring plan, which is designed to make the automaker a viable company and comply with a $13.4 billion federal loan package. GM has asked for up to $16.6 billion in additional aid and faces a March 31 deadline to show progress on reaching money-saving concessions from labor and lenders.
Workers in GM's manufacturing engineering area were notified today and must leave by April 1, spokesman Tom Wilkinson said.
"These are talented and capable people and it was very difficult for GM and very difficult for the employees," Wilkinson said. "But the reductions are necessary to implement the viability plan and make the business self-sustaining in the long term."
GM's viability plan includes eliminating 47,000 jobs worldwide, closing 14 plants in the next three years and selling, shrinking or killing its Saturn, Hummer, Pontiac and Saab brands.
The automaker will eliminate 3,400 white-collar jobs this year and 18,000 hourly jobs in the U.S. by the end of the year, Wilkinson said.
The white-collar workers get a half-month's severance pay for each year of service up to six months. The severance includes base salary plus GM contributions for health, dental, vision and life-insurance coverage.
The white-collar firings come on the same day United Auto Workers face a deadline to accept early-retirement and buyout offers.
The automaker is trying to thin its ranks by offering eligible workers a $25,000 voucher for a new GM vehicle and $20,000 in cash.
GM would like to see at least half of the 22,000 retirement eligible workers leave. The offers apply to all of its 62,000 hourly workers.
DN Auto Insider Article
