19,000 GM workers take buyout, retirement offers; more cuts likely
General Motors announced on Thursday that 19,000 of its hourly workers have taken the Detroit-based automaker up on its buyout or retirement offers. In all, GM extended the buyout and retirement plans to over 74,000 UAW workers in an effort to streamline its production efforts.
While GM will not replace all 19,000 workers, it will replace some of the positions will lower-paid hourly workers — in most cases at a pay of about half of what UAW workers currently makes.
However, despite trimming 19,000 workers, GM’s North American turnaround plan has essentially stalled. Therefore GM will be taking Ford’s lead within the next few months and will likely be cutting even more positions, according to Automotive News.
The cuts also reflect how much worse off the domestic automakers are compared to their Japanese counterparts. While the Big Three continue to cut American jobs, the big three from Japan continue to create jobs for American workers.
While details of the next phases of GM’s plans have yet to be announced, we expect to hear more on the subject at the automaker’s annual meeting on June 3.
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