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It could be a good thing...
If those who except have anything left in their retirement. Not a bad idea to buy out the ones who are eligible for retirement, rather than putting the 35yr old with 2 kids, a stay at home mom and a mortgage payment in the unemployment line.
 
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Discussion Starter · #7 ·
Basic business 101

If you're sinking, unload the labor. Payroll is usually the biggest expense and the quickest was to cut costs. Hopefully it isn't too late for GM. Sad for those who may lose their jobs, but the alternative is to take down GM. I'm guessing tons of people will leave.

If our gov't & States knew this basic rule, we wouldn't be in this hole. But instead what does the gov't do? hire more people and spend more money. Makes total sense...if you're an idiot.
 

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Basic business 101

If you're sinking, unload the labor. Payroll is usually the biggest expense and the quickest was to cut costs. Hopefully it isn't too late for GM. Sad for those who may lose their jobs, but the alternative is to take down GM. I'm guessing tons of people will leave.

If our gov't & States knew this basic rule, we wouldn't be in this hole. But instead what does the gov't do? hire more people and spend more money. Makes total sense...if you're an idiot.

Perfect! LOL!
 

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I'm famous !
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It could be a good thing...
If those who except have anything left in their retirement. Not a bad idea to buy out the ones who are eligible for retirement, rather than putting the 35yr old with 2 kids, a stay at home mom and a mortgage payment in the unemployment line.
Veiw it as a bribe to quit the union and come back to work at a lower wage - Their is no retirement lol . G.m is cutting the fat and its costing them money !:)coffee
 

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Veiw it as a bribe to quit the union and come back to work at a lower wage - Their is no retirement lol . G.m is cutting the fat and its costing them money !:)coffee
I dont think many of their employess are in a postion to retire at this point. $20k and a new car isnt going to help either.
 

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I dont think many of their employess are in a postion to retire at this point. $20k and a new car isnt going to help either.
Thats what i am saying they will take the money the car and come back to work in JUNE doing the same thing that they where - at less pay ( a fair wage) my .002
 

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Thats what i am saying they will take the money the car and come back to work in JUNE doing the same thing that they where - at less pay ( a fair wage) my .002
I doubt Gm would hire them back...

The jobs would be open to unexperianced applicants.
 

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Most likely they will be on gov't assistance programs........That way we all get to pay them twice..........Once with the money sourced from the bailout and then again with unemployment programs.
 

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Nothing new here. The government money they got was intended for this very thing from the beginning. Also the approx. 22K employees being offered the package are "pension eligible" and the $20K is just an enhancement to move them out. It's far more economical to get these people off the clock asap as they are the highest scale in hourly labor costs. Probably among the least productive also.

Current new hires have a completely different pension structure and hire in for less money. This is a planned and positive step towards getting stabilized.
 

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Just a little fyi here, but this has been happening for years. Downsizing the work force has been the key restructuring activity since 2005. There have been countless rounds of buyouts, but most of them paid more. This has BY FAR been the biggest contributor to the large losses shown the last few years; large special items on the income statement for restructuring costs.

These people didn't leave then, they won't now. It's sad they can't evaluate it the way most can and see the writing on the wall.

The upside is the new contract allows layoffs in instances where there are huge swings in volume, like now. So hopefully that motivates a few.
 
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