Sweeping Buyout Planned at GM
The United Auto Workers has reached agreements with Delphi Corp. and General Motors Corp. on a restructuring plan that will speed up the retirement or transfer of more than 100,000 blue-collar workers from both companies.
GM officials also said the agreement will include a
combination of early retirement incentives and other considerations to help
reduce employment levels at both GM and
"When we announced the capacity rationalization and employment reduction plan late last year, we said we'd be working with UAW leadership to develop an accelerated attrition program that would help us achieve needed cost reductions as rapidly as possible, while at the same time responding to the needs of our employees," said GM Chairman and Chief Executive Officer Rick Wagoner.
"We are pleased that this
agreement will help fulfill that important objective. In addition, the agreement
will enhance the prospects for GM, the UAW, and Delphi to reach a broad-based
consensual resolution of the
The program will be offered to all
GM hourly employees, but overall acceptance rates will depend on individual
employee decisions. The program also permits the flow of UAW-represented
"We remain focused on the
transformation of
The agreement is subject to
approval by the Bankruptcy Judge overseeing Delphi's bankruptcy
proceedings Approximately 13,000 hourly union-represented employees may be
eligible to participate in the plan,
In a key portion of the
agreement, GM said it will provide substantial financial support under the
proposed plan, which is subject to bankruptcy court approval. GM also
agreed to take back 5,000 workers as part of the agreement, which capped off
more than a week of intensive negotiations between GM,
GM has pledged to assume the
financial obligations related to the lump sum payments to be made to eligible
Delphi
The proposed plan for eligible
PRESS RELEASE: GM, the UAW and Delphi Reach Agreement on Accelerated Attrition Program
DETROIT - General Motors Corp. (NYSE: GM), the United Auto Workers union
and Delphi Corp. have reached an agreement to reduce the number of U.S. hourly
employees through an accelerated attrition program. The agreement, which is an
important contributor to GM's turnaround plan in North America, is subject to
approval of Delphi's participation by the Bankruptcy Court. The program is expected to be offered to U.S. hourly employees at GM and
select UAW-represented members of Delphi's hourly work force. It will include a
combination of early retirement incentives and other considerations to help
reduce employment levels at both GM and Delphi in a manner that benefits both
eligible employees and the companies. "When we announced the capacity rationalization and employment reduction plan
late last year, we said we'd be working with UAW leadership to develop an
accelerated attrition program that would help us achieve needed cost reductions
as rapidly as possible, while at the same time responding to the needs of our
employees," said GM Chairman and Chief Executive Officer Rick Wagoner. "We are
pleased that this agreement will help fulfill that important objective. In
addition, the agreement will enhance the prospects for GM, the UAW, and Delphi
to reach a broad-based consensual resolution of the Delphi restructuring." The program will be offered to all GM hourly employees, but overall
acceptance rates will depend on individual employee decisions. The program also
permits the flow of UAW-represented Delphi employees back to GM until September
2007. In addition, eligible UAW-represented Delphi employees may elect to retire
from Delphi or flow back to GM and retire. Under the agreement, GM has agreed to assume the financial obligations
related to the lump sum payments to be made to eligible Delphi U.S. hourly
employees accepting normal or voluntary retirement incentives and certain
post-retirement employee benefit obligations related to Delphi employees who
flow back to GM under the plan. GM expects to record the cost associated with
the attrition program in 2006. The cost will be incurred as employees agree to
participate.
Email This Page