600 UAW members change their minds about GM buyouts

Of the 7,631 United Auto Workers members that accepted offers for an early retirement and buyout offers, 600 have changed their minds before Tuesday’s deadline. The offers are aimed to help GM cut costs and clear the way for the automaker to hire new workers at half the hourly wage. It is seen has a key step to helping GM slash costs and comply with the $13.4 billion loan package.

“People are looking at the situation with the company and the economy and making the call on their own,” said Tom Wickham, a GM spokesman. “The fact we got 7,000 people to participate was very positive.”

Under the terms of the UAW agreement reaching in 2007, new hires will receive a $14 an hour salary, about half the wage that current workers are paid.

General Motors has offered $20,000 cash and a $25,000 voucher that can be used toward a purchase of a new GM vehicle.

– By: The Daily Auto Editor

Source: Detroit News