Since emerging from bankruptcy in July, GM has invested $1.4 Billion into over a dozen plants and created about 5,500 jobs. GM emerged with about $50 billion in federal aid. Most recently, the company recalled 1,200 laid-off hourly employees and added a third production shift in Lordstown, Ohio in order to build the 2011 Chevy Cruz, set to go on sale in the third quarter.
One avenue GM has to look at is filling the positions with lower-paid union workers should they not be able to fill them with the 5,000 âˆ’ 6,000 laid off union workers. Under the terms of the UAW bargaining agreement reached in 2007, new hires are paid at a rate $14 per hour less, and with a less enticing benefits package. It is expected that most of the 1,200 jobs will be filled by laid-off workers.
Before it is in the position to hire large numbers of lower-paid workers, GM will need to see a major increase and improvement in the economy.
– By: Stephen Calogera
Source: Detroit News