GM says they offered buyout’s to 74,000 workers

May 30, 2008

GM Cutting more jobs

As of July 1st, a quarter of General Motors’ hourly workers in the U.S. will be gone.

That’s because 19,000 people have agreed to take buyout offers from the struggling automaker.

Earlier this year, GM offered 74,000 employees packages that included incentives to retire early with full benefits and pension or a one-time cash payout of $140,000 with no other benefits.

The mass exodus will allow the car company to hire assembly workers at half the $28 hourly wage they make now. GM also said it would also try to fill positions with workers who decide to stick around.

After July 1st, GM’s hourly workforce in the U.S. will be around 55,000. Before the buyouts started two years ago, it was nearly 113,000.

The company hopes to reshape its business after being battered this decade by foreign imports, high gas prices and a worsening economy.

In Tennessee, GM has a manufacturing facility in Spring Hill where the Saturn Vue and Ion are made. The plant was opened in 1990. Subcontracting companies throughout the state will also feel the pinch as the company continues to downsize in the future.

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