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General Motors Buyouts Fall Short

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  • General Motors Buyouts Fall Short


    General Motors buyouts likely to fall short; layoffs loom

    General Motors hoped at least 7,000 white-collar workers would sign up by noon Monday for a buyout offer, but managers told employees last week that it was likely to fall short, raising the prospect of significant layoffs.

    The number volunteering for the offer is likely be closer to 4,000 based on estimates by an actuary, some GM employees said managers told them.

    That means 3,000 or more salaried workers in North America could be terminated starting in January if the automaker in fact opts for forced job cuts, which it has said it would consider if buyouts fell short.

    That's the message some GM managers gave salaried workers during department meetings held Thursday and Friday of last week, several employees who attended the meetings told The Detroit Free Press. The meetings were an 11th-hour attempt to help employees with 12 or more years at GM decide whether they want to take a voluntary buyout.

    GM employees who talked to the Press did so on condition of anonymity because their jobs are at risk.

    More: GM memo: We must cut costs, can't wait to see what happens in industry

    The meetings were presented as informational and GM managers told employees, "Nobody’s under pressure to sign up or fear they’ll be threatened with firing or termination if they don’t sign up," said a former senior-level GM manager who spoke with several employees who attended the meetings.

    “GM (leaders) haven’t decided what they’re going to do if there is a shortfall — if they don’t hit 7,000," said the source. "They said they may start the process in mid-January for involuntary releases.”

    A GM spokesman would not confirm that date or that GM would pursue involuntary cuts. He said he was not aware of any company-wide meetings last week. If there were meetings, they would have been staff-by-staff, he said. He also said he was not aware of any figures or targets the company has set or would share with workers.

    GM has said it must trim costs amid the rising prices of raw materials and plateauing car sales. So on Oct. 31, GM CEO Mary Barra sent an email to all 50,000 salaried GM employees in North America saying the automaker is offering voluntary buyouts to the 17,700 salaried employees who have 12 years or more with GM. Most global executives are also eligible.

    Related video: GM CEO on US-China trade war, auto stocks and leadership
    Click to expand

    © Provided by Gannett Co., Inc.

    Contact Jamie L. LaReau: 313-222-2149 or [email protected]

    This article originally appeared on Detroit Free Press: General Motors buyouts likely to fall short and layoffs loom
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  • #2
    Mary Barra Video Below - CEO for GM

    https://www.bing.com/videos/search?q...3&&FORM=VRDGAR
    Last edited by Frenzy36; 11-20-2018, 03:06 AM.
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    • #3
      That was a crappy buyout so no surprise here

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      • #4
        Originally posted by JBsC6 View Post
        That was a crappy buyout so no surprise here
        exactly what I said on the original thread

        The only way a salaried employee is going to take that voluntarily is if they were thinking of leaving anyway. Two weeks or less per year of service is minimal.

        Or the next step:

        Layoffs. So it's likely that managers may make some employees an offer they can't refuse. "take the buyout now or I lay you off with nada".

        This is coming from a manager with a US Corporation who sadly presided over a lot of layoffs.
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        • #5
          Great post Frenzy36. Maybe they met their expectation cause they were prepared to deal with any result.


          "General Motors hoped at least 7,000 white-collar workers would sign up by noon Monday for a buyout offer, but managers told employees last week that it was likely to fall short, raising the prospect of significant layoffs. The number volunteering for the offer is likely be closer to 4,000 based on estimates by an actuary, some GM employees said managers told them."


          Guess they could offer additional incentives, move to layoffs or nothing.



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          • #6
            GM has over 50,000 salaried employees, and with the 4,000 taking the over, they could only need a max of 3,000 more to either take an enhanced buyout if they really meant 7,000, or maybe they wished for 7,000 and would have been very happy with just 3,500 taking the offer from the beginning.

            There are tens and tens of way for GM to reduce its costs for their estimating future market negative adjustment, and reducing salaried employees is just one of those many options.

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            • #7
              GM is bloated, knows it and is being forward in cutting costs. The other part of this is WE have no idea what is really going on inside GM with respect to future earnings projections and costs etc. Had this happen at my company twice and part of the voluntary thing is it helps later when layoffs happen ----then the dead wood gets cut etc. Stand by you will see. The stated objective is to get younger lower priced labor...…
              Last edited by Busa Dave; 11-20-2018, 08:47 PM.

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              • #8
                Wow, Dave you went quite extreme in your comments. There are young people who get paid less who are dead wood, and there are employees approaching retirement, yes who get paid super high dollar amounts, who are still cutting edge, who are still leaders in lots of ways. Of course, there are employees nearing retirement who are also dead wood.

                I am sure you are older than many employees who work in your business, yet you are still more productive than many younger than you,.

                There is dead wood in every age group in almost every organization. Not that pruning dead wood employees, regardless of age, isn’t a very good and necesssary thing.

                Generalizations about employees by age are often wrong, and of course are inappropriate here on this forum.
                Last edited by John; 11-20-2018, 07:48 PM.
                GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

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                • #9
                  John I Edited Comments Sorry-----Mary said much the same thing just put a number of years of service with it. FACT older workers tend not to move as much due to many reasons. Been part of this with a company much larger than GM. In the end it will be the lower ranked employees over a period of time (some lower labor grades i.e. college new hires for the most part or recently hired say 2 years or less or recently promoted in the last 18 months who will be exempted from the eligible layoff pool) who HR will allow the ax to fall on. It is all about dollars, plug and play, standardized work packages. It will impact more tenured workers because the exception criteria keeps many employees from being placed into the lay off consideration pool.

                  Companies like GM are openly embracing the fact that average tenure is short--gone are the reasons to stay even 10 years without moving(exceptions for example are the i.e.Leadership Training Programs for select employees). Pensions not offered any longer coupled with the changes in benefits just as an example vacation, gone are the days of being employed for 10 years going from 2 to 3 weeks and 15 years or 20 for 4 weeks. Many such as mine start with 3 weeks now because average new hire tenure is less than half of 10 years at my company just for example and that is what attracts college new hires. Focus is on processes and standardized work packages to lower costs along with lower average salaries. Cash Flow is king.
                  Last edited by Busa Dave; 11-20-2018, 08:52 PM.

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                  • #10
                    Probably going to find certain plants are getting shuttered....certain prodict lines are going to run on with minimal changes for quite a long time.

                    the shift in consumer preferences away from sedans and into cuv s..leaves a lot of product that is going to get less and less investments and possibly even production..

                    the buyouts allow gm to avoid discrimination lawsuits down the road...

                    was a crappy buyout with little incentive to take....unless you had a feeling your job is on the block...

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                    • #11
                      And the other shoe drops

                      GM stock rises 4% on restructuring plan calling for layoffs, cost-cutting

                      Shares of General Motors Co. GM, +7.18% rose more than 4% Monday after the car maker announced cost-cutting measures that include trimming its vehicle line-up in the U.S. and closing U.S. and overseas plants, which will trigger layoffs. "The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," GM Chief Executive Mary Barra said in a statement. GM said the moves are expected to increase its free cash flow from autos by $6 billion by 2020, including cost reductions around $4.5 billion and lower capital spending. More resources will be allocated to electric and autonomous vehicles. More than 75% of GM's global sales volume will come from five vehicle architectures by early next decade, the company said. GM will cut salaried and salaried contract staff by 15%. The stock was briefly halted ahead of the announcement.
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                      Carbon flash mirrors and spoiler.

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                      • #12
                        Originally posted by JBsC6 View Post
                        Probably going to find certain plants are getting shuttered....certain prodict lines are going to run on with minimal changes for quite a long time.

                        the shift in consumer preferences away from sedans and into cuv s..leaves a lot of product that is going to get less and less investments and possibly even production..

                        the buyouts allow gm to avoid discrimination lawsuits down the road...

                        was a crappy buyout with little incentive to take....unless you had a feeling your job is on the block...
                        Guess you got you answer today whew... Big restructure with plants shuttered and product cancelled. Even surprised me a little that it all came out at once--will be more detail to follow. Ford will be next --just watch.

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