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GM to cut 10,000 salaried jobs

By Reuters Staff
February 10, 2009

General Motors employees hold signs and chant before a vehicle reveal during press days at the North American International Auto Show in Detroit, Michigan, January 11, 2009. REUTERS/Rebecca Cook

The pain in the auto industry keeps getting worse. General Motors has just announced that it will cut its global salaried workforce to about 63,000 from 73,000 this year. The remainder of its salaried staff face pay cuts.

In the United States, approximately 3,400 of GM’s 29,500 salaried employees will be cut. The temporary pay cut for most U.S. salaried employees runs May 1 through the end of the year. Executive employees will have their base pay cut by 10 percent, with others seeing cuts of 3 percent to 7 percent.

If you’re among those likely to be affected, tell us about the mood where you work. What severance terms and other assistance is the company expected to offer? How will you cope with reduced income?

(Picture: General Motors employees hold signs and chant before a vehicle reveal during press days at the North American International Auto Show in Detroit, Michigan, January 11, 2009. REUTERS/Rebecca Cook)

Comments

I feel for those losing their jobs, however I must admit that this might not have happened had the unions been so greedy in wanting all those benefits and probably double the pay of what they should have been making.

Posted by JoAnn | Report as abusive
 

All’s I can say anymore is ouch.

Living in Michigan has become a real heart-breaking experience. Our Governor promised when she was campaigning that we would be blown away… I promise you we are. Factories,business, people, hope. They all left.

The houses sit on the market when a bank asks 1$ for them *not kidding* and the unemployment office is the only place hiring. *once again not kidding*

The only thing we are producing is a warning to the nation. This can happen to you when you tax to hard and take to much from the real producers.

Posted by 1 of the 10.6% of Michigan | Report as abusive
 

The unions have been screaming to the media that they have already made significant concessions and can do no more. However, nearly all of those concessions are in the form of FUTURE reductions in wages / benefits, applicable only to those people hired later. Present workers cannot afford any wage cuts or benefit reductions – maintaining a cabin up near Traverse City is pretty expensive, not to mention the high insurance costs for the RVs, boats and jet skis. Also, even the thought of having to pay anything out of pocket for medical care is outlandish. To the rank and file I say – the union does NOT sign your paychecks. Think about it!

Posted by Ed | Report as abusive
 

How are the unions at fault for GM’s decision to cut SALARIED employees. Companies don’t cut employees that are 100% essential for the operation of business. True, you can’t cut union employees without trying to renegotiate with the whole union. However, I’d be willing to bet that a union worker on an assembly line is more vital in getting a necessary task done than an individual in an office. It’s sad, but cut the fat!

The real problem in in America is that we love American trucks & SUVs & we won’t give smaller American cars a chance. Otherwise, the car companies wouldn’t have taken such a severe hit when gas prices went up to $4.00 per gallon.

Posted by Tim Charpentier | Report as abusive
 

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