Email List Sign Up

GM hourly workers face permanent layoffs

November 6, 2009

GM hourly workers face permanent layoffs

The Detroit News

Detroit — While General Motors Co. does not plan any deep job cuts, the automaker still has too many hourly workers and could permanently eliminate some of the 6,000 to 7,000 workers currently on layoff.

Some of the workers are temporarily or indefinitely laid off and while GM is adding shifts at a few plants to boost output, some of the workers not called back could lose their jobs, CEO Fritz Henderson said Thursday at the Renaissance Center.

"If it turns out after a period of time, that those people aren’t required, then basically they will leave the company," he said. "That’s the way it works."

Yet there are encouraging signs. GM is adding a shift to a Canadian plant and may add a shift at its Fairfax plant in Kansas.

Henderson also discussed Tuesday’s board vote to keep Adam Opel GmbH instead of selling it to Canada’s Magna International Inc. and its Russian partner, Sberbank. He said by the end of this month GM will repay a $2.2 billion bridge loan that kept Opel afloat until a deal could be finalized or rejected.

There are options available for Opel to finance the $4.4 billion it needs to restructure, he said. It could tap cash reserves or reduce royalties GM charges Opel for use of its technology. Also, since emerging from bankruptcy, GM is not barred from spending some of the $50 billion in federal aid it has received on its overseas units.

GM will submit a restructuring plan soon to Germany and other governments that could entail 10,000 job cuts and a roughly 30 percent cut in structural costs.

Thousands of German workers staged a mass walkout Thursday in protest of GM’s decision.

Magna Co-Chief Executive Don Walker, speaking on the supplier’s third-quarter earnings call, said: "We’ll continue to support Opel and GM, and hope our business will continue to grow with them."

Seniority Lists
Recent Posts!
Bargaining Committee

Mike Herron
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Kirk Zebbs
Don Numinen
Jay Minella
Danny Bragg
Chris Hill
Rashad Thomas
Keith Oswald
Chris Brown

1853 Officers

Tim Stannard
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts

GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Katherine McGaw
Retiree Chair
Mike Martinez

Get Text Alerts


*Standard text messaging rates may apply from your carrier