General Motors announced today that 7,631 UAW workers, which makes up about 12 percent of its hourly work force, accepted early retirement and buyout offers. GM said that the move will help make the automaker cut costs and allow it to hire workers at lower wages.
GM spokesman Tony Sapienza said that the move is “a significant milestone of progress towards our restructuring plan.”
About 624 workers at GM’s Janesville, Wisconsin plant accepted the offer – making it the largest group of workers taking the offers at any one facility. Coming in second was GM’s metal plant in Grand Rapids, where 596 workers accepted retirement and buyout offers. GM said that more than 53 percent of those taking the offers come from factories in Michigan.
Retirement and buyout offers were available to 62,000 GM hourly workers. Spaienza said that most of the workers were retirement eligible while only a few hundred who were not retirement eligible opted to take the offer.
The workers were already eligible for a pension of $37,000 a year, plus $20,000 in cash and a $25,000 voucher for a new GM vehicle (which is worth $15,500 after taxes).
– By: Omar Rana
Source: Detroit News