Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

GM offers buyouts to it s hourly workers

NEW YORK, Feb 13 – General Motors said it was offering voluntary buyouts or early retirement packages to all its hourly production workers as part of the troubled automaker\’s overhaul.

GM spokesman Tom Wilkinson said the offer "is available to all 62,000 hourly employees" covered by the United Auto Workers (UAW) union.

"Of those, approximately 22,000 are retirement-eligible, so taking the incentive would move them into retirement," he said.

"The goal is to allow us to hire more tier-two workers (who start with a lower wage and benefit cost) once business starts to pick up again."

GM\’s current contract with the UAW allows the company, with the union\’s consent, to offer buyouts if business conditions warrant cutbacks.

The news came two days after GM said it would cut 10,000 white-collar jobs worldwide this year as part of a restructuring plan the struggling automaker submitted to the government in exchange for an emergency loan.

Wilkinson said the latest actions "are part of the ongoing restructuring of the company, which has been accelerated by the economic crisis and the terms of the government loan program."

The biggest US automaker will release an update of the restructuring February 17 as part of the requirements for the government loan.

GM has received 9.4 billion dollars from the US Treasury to avert running out of cash as it struggles with a massive sales downturn. The government may release an addition four billion dollars if the company addresses concerns about its viability.

Advertisement. Scroll to continue reading.

GM will issue its quarterly financial results "some time after the plan," according to Wilkinson.

The company has piled up some 72 billion dollars in losses since 2005.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...