GM offers workers up to $140K to leave

[frugalman]

http://money.cnn.com/2006/03/22/news...cnn_topstories

"General Motors is offering hourly workers as much as $140,000 each to leave the company as the troubled automaker extends its push to cut labor costs and put an end to billions of dollars in losses."

would you leave under these circumstances?

[najibs]

I'd take the money and leave! Heck, even if you can't find a job, $140k will last you a while or would be plenty to start your own business...

[FastFokker]

They're not offering $140,000.. they're offering *UP TO* $140,000..

That's like stores saying "Starting from $9.99" but the $hit you want is actually $39.99.

Those with less than 10 years service will get $70,000 if they leave without the health care coverage.

Man, that's barely more than a years salary. Screw that.

[Geese_Howard]

They're not offering $140,000.. they're offering *UP TO* $140,000..

That's like stores saying "Starting from $9.99" but the $hit you want is actually $39.99.

Man, that's barely more than a years salary. Screw that.

yes exactly, If you have b een working there for 25+ years you can probabley get that, 2-4% will only get that, the rest will be less.

[najibs]

They're not offering $140,000.. they're offering *UP TO* $140,000..

That's like stores saying "Starting from $9.99" but the $hit you want is actually $39.99.

Man, that's barely more than a years salary. Screw that.

$70,000 is still a good amount for the ones that have been there less than that. I'd invest it into stocks...

[FastFokker]

$70,000 is still a good amount for the ones that have been there less than that. I'd invest it into stocks...

It is a good chunk of cash.. It's a tempting offer if you're going to be laid off indefinitely anyway.

It's just taking that cash writes you off of all benefits and future benefits you previously had... which can be really hard for the families involved.

I mean, for someone with no children and no large obligations it's not much of an issue.. "go on take the money and run.." But for families who are already strapped tight and for workers who don't have a lot of other options in life.. it's not an ideal attraction.

It sucks and I feel bad for those families.. but this is the way the global economy punches are coming, and we've got to roll with them.

[danfromwaterloo]

It is a good chunk of cash.. It's a tempting offer if you're going to be laid off indefinitely anyway.

It's just taking that cash writes you off of all benefits and future benefits you previously had... which can be really hard for the families involved.

I mean, for someone with no children and no large obligations it's not much of an issue.. "go on take the money and run.." But for families who are already strapped tight and for workers who don't have a lot of other options in life.. it's not an ideal attraction.

It sucks and I feel bad for those families.. but this is the way the global economy punches are coming, and we've got to roll with them.

It's been my experience that the people who take these packages usually finish WAY out ahead in the long run. Assuming you have marketable skills, take the money and run. If it takes you three months to find another job, you're still well over a year ahead.

The car market is a relative constant. From year to year, the amount of cars sold is roughly a constant. Therefore, if GM is having a rough time, one of the other car companies needs seasoned employees to build their cars, which are selling more. Take the money, move your family to a Toyota plant city, and get a job there.

[FastFokker]

Take the money, move your family to a Toyota plant city, and get a job there.

That's often easier said than done.. but you have many good points.

I have a relative who took a severance package after working in a factory for 20+yrs.. he never did find another good job and that money didn't last. It's a sad story, but in his case, there was no other option.. the factory closed and moved to Mexico. (Closed in late 80's or early 90's, I forget now)

Tough choice..

[winner2000]

Take the money, move your family to a Toyota plant city, and get a job there.

Easier said than done my friend. Sure, that might have worked 10-15 years ago when only the big 3 dominated, but today's car market is much bigger than that. Toyota is doing very well for the time being, but in 5-10 years time, Chrysler could take the lead. Or GM could (finally) come out with a decent line of cars which spurs it's sales and allows it to regain the lead. The Chinese are coming full force into the North American market within a few years. How often are you going to move around like that?

[kingfencer]

a friend makes 80k plus a year for a auto plant, for him, this is a rip, not gm plant though.

[doc_ock]

It is a good chunk of cash.. It's a tempting offer if you're going to be laid off indefinitely anyway.

It's just taking that cash writes you off of all benefits and future benefits you previously had... which can be really hard for the families involved.

I mean, for someone with no children and no large obligations it's not much of an issue.. "go on take the money and run.." But for families who are already strapped tight and for workers who don't have a lot of other options in life.. it's not an ideal attraction.

It sucks and I feel bad for those families.. but this is the way the global economy punches are coming, and we've got to roll with them.

If GM files for bankruptcy, which some analysts say is quite likely at some point, workers can kiss their benefits goodbye anyways.

[danfromwaterloo]

Easier said than done my friend. Sure, that might have worked 10-15 years ago when only the big 3 dominated, but today's car market is much bigger than that. Toyota is doing very well for the time being, but in 5-10 years time, Chrysler could take the lead. Or GM could (finally) come out with a decent line of cars which spurs it's sales and allows it to regain the lead. The Chinese are coming full force into the North American market within a few years. How often are you going to move around like that?

Chrysler take the lead???? HAHAHAHA....are you freakin serious?

No, in 10 years time, the Big 3 will be Toyota, Honda, Hyundai. Geely will be where Hyundai is now, and North American cars will be where Kia is today.

[Ojam]

That's often easier said than done.. but you have many good points.

I have a relative who took a severance package after working in a factory for 20+yrs.. he never did find another good job and that money didn't last. It's a sad story, but in his case, there was no other option.. the factory closed and moved to Mexico. (Closed in late 80's or early 90's, I forget now)

Tough choice..

VW?

[frugalman]

If GM files for bankruptcy, which some analysts say is quite likely at some point, workers can kiss their benefits goodbye anyways.

any sources on this info?

[winner2000]

Chrysler take the lead???? HAHAHAHA....are you freakin serious?

No, in 10 years time, the Big 3 will be Toyota, Honda, Hyundai. Geely will be where Hyundai is now, and North American cars will be where Kia is today.

It was just an example...anything could happen in a fickle industry like automotives. I'm sure people would have laughed 10 years ago if anyone had said GM was going to be on the verge of bankruptcy.

Here we are.