25% of General Motors Workers To Take Buyout Offer
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DETROIT — General Motors Corp. said yesterday that a quarter of its American hourly workers will take the company’s latest buyout and early retirement offers, opening the door for new hires who will make less money.
The automaker said yesterday that 19,000 workers had agreed to take the buyout offers and leave the company by July 1. GM offered buyouts to all 74,000 of its American hourly workers in February.
GM never said how many workers it hoped would take the buyouts, but under a new labor agreement reached last fall with the United Auto Workers union, GM may hire up to 16,000 non-assembly workers at half the old wage of $28 a hour. GM said it would fill job openings with current employees wherever possible, but would also be hiring new workers.
GM’s North American president, Troy Clarke, said GM is trying to reshape its business in a challenging American market, which has seen a steep dropoff in auto sales due to high gas prices and the weak economy.
“This attrition program gives us an opportunity to restructure our U.S. work force through the entry-level wage and benefit structure for new hourly employees,” he said.
Under the program, retirement-eligible workers were offered financial incentives to retire with their full pension and benefits, while workers who were within four years of their 30th anniversary with the company were allowed to retire early and get reduced pay until their benefits kicked in. Workers could also take up to $140,000 to leave the company with no ties, including pension or health benefits.