While some are calling GM's decision to reduce its total North American workforce by some 30,000 hourly jobs over the next four years
heartless, the move is a much needed dose of a bitter pill that for UAW and CAW workers, will be hard to swallow.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," said GM Chairman and CEO Rick Wagoner in a news conference at the automaker's Renaissance Center headquarters in downtown Detroit. "But these actions are necessary for GM to get its costs in line with our major global competitors."
GM will be attempting to achieve most of the job cuts through "attrition and early retirement", said Wagoner. Also GM hopes to reach an agreement with its worker's
unions for the implementation of an early retirement program, to soften the blow on some employees. The automaker will release details of any such plans at a later date.
Labourers won't be the only workers facing cuts, mind you, with white-collar jobs expected for next year. GM has cut its salaried workforce by 32 percent since 2000, a number that is expected to grow to 40 percent by the end of 2006, says Wagoner.
Other than the two Oshawa plants, Rick Wagoner, CEO of the world's largest automaker, announced Monday that it will shut down four assembly plants and four stamping and powertrain plants while trimming output at several other facilities by the end of 2008.
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| While some are calling GM's decision to reduce its total North American workforce by some 30,000 hourly jobs over the next four years heartless, the move is a much needed dose of a bitter pill that for UAW and CAW workers, will be hard to swallow. (Photo: Rob Rothwell, Canadian Auto Press) |
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," said GM Chairman and CEO Rick Wagoner in a news conference at the automaker's Renaissance Center headquarters in downtown Detroit. "But these actions are necessary for GM to get its costs in line with our major global competitors."
GM will be attempting to achieve most of the job cuts through "attrition and early retirement", said Wagoner. Also GM hopes to reach an agreement with its worker's
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| Hourly labourers won't be the only workers facing cuts, mind you, with salaried white-collar employees cut from the payroll to reach 40 percent since 2000, precisely the kinds of buyers that would have otherwise purchase the new Buick Lucerne. (Photo: General Motors of Canada) |
Labourers won't be the only workers facing cuts, mind you, with white-collar jobs expected for next year. GM has cut its salaried workforce by 32 percent since 2000, a number that is expected to grow to 40 percent by the end of 2006, says Wagoner.
Other than the two Oshawa plants, Rick Wagoner, CEO of the world's largest automaker, announced Monday that it will shut down four assembly plants and four stamping and powertrain plants while trimming output at several other facilities by the end of 2008.