AFSCME 3357-HOF'S BLOG

Next up: More Buyouts for GM Workers

The Detroit News reports that General Motors is trying to implement a new buyout program aimed at reducing the number of high-seniority UAW workers. The General is facing greater pressure to cut costs because sales have been slipping in recently, and the outlook over the near-term does not look good due to overall economic conditions, especially the housing slump.

The buyout would be similar to the one implemented in 2006 when workers received $35,000 to $140,000 in lump sum payments. Many but not all of the bought-out workers would be replaced by new workers in the lower tier of the two-tier contract that GM negotiated with the UAW this fall. According to the Detroit news, implementation of the new buyout plan has been slowed because the two-tier structure has not fully been implemented. The two-tier structure is being set up on a plant-by-plant basis.