As General Motors prepares to layoff the second shift at the Lordstown, Ohio, plant, hundreds of workers have opted to retire early or take a buyout package.
The Youngstown Vindicator reported on Monday that 595 employees chose the special attrition option, which GM offered in April as it announced the second-shift cut. The buyout takers could help reduce the layoff’s effects, which originally was thought to leave 1,500 employees jobless.
“Obviously [the buyouts are] going to help retain some people,” Dave Green, president of United Auto Workers Local 1112, said. “We want to retain as many members working as we can. For the people who leave, that should save the spot of someone else.”
According to the report, early retirees will receive a one-time cash payment of $60,000 and agree to “relinquish all seniority and rights under GM benefit plan” aside from vested pension plans. For buyout takers, the one-time lump sum can be around $50,000 for workers with more than 20 years at the plant, to as little as $5,000 for workers with less than five years with the plant.
The plant’s final day for a second shift is June 22. Then, the Lordstown plant will run on a single shift to build the 2018 Chevrolet Cruze sedan.
Comments
Okay, dating myself here ….. but GM sold a lot of J cars when they offered a multitude of body styles — sedan, coupe, hatchback coupe, wagon, convertible, specialty coupe (Z24)…..
Now we think we can build one or two bodystyles and still sell the same number?
Cars are dying.
At least GM has the sense to keep cars around instead of killing off everything not considered a truck or SUV/CUV.
“Now we think we can build one or two bodystyles and still sell the same number?”
Short answer: No.
Long answer: The automotive world has changed so damn much in 35 years, I don’t think the same variety of body styles would even matter anymore if consumers are only gravitating to one particular body style; the SUV/CUV. As versatile as the J-body was, the market seems to care little for have so many body styles to choose from.
I image if someone wanted a convertible they wouldn’t look at an SUV/CUV; they’d just go right to a purpose built low volume convertible. Although Nissan and Land Rover have made convertible SUV/CUV’s, those cars will never have the scale to recoup the engineering investment costs if not for their fixed room siblings that have greater mass market appeal.
Different time different era and different customer expectations.
GM also went broke in that era. Lost of cars were sold but few made money and cost of doing so many was very expensive then and prohibitive today.
Just add the hatch and break or a cross break, a coupe and a sporty iteration of the cruze and you have five combination to offer. people like to have choice.
i am an ex employee from holden australia i loved my job and the holden plant was top for quality and performance ,it still closed down ,the excuse about cost was bullshit ,the new manager from the us was sent in to shut it down .there were all sorts of excuses .most did not include the poor high management fault and the smart senior management that were the problems ,the workers were doing there best but if the top were flat out killing the company ,the workers were fucked so now its closed now there sales are going down because the public are now not interested with its not australian made so might as well buy other imports from korea or other asian country “disappointed”
So is the thinking that there is no reason to buy Holden unless it’s made locally in Australia? In other words, the thinking is that Holden models are inferior to imported models?
When GM offered their “pension buyouts” in the Michigan market 5-6 years ago, I worked with a fare share of retirees to educate them on their choices. Back then, GM offered the options of: 1) taking possession/control of your retirement pension and choosing to work with an experienced agent like myself to safely re-position that buyout amount in a “risk free” annuity, 2) allow GM to re-position all of your pension monies into an immediate annuity with Prudential. I was able to show and explain how taking control of your money is always the better option. Every one of the GM retirees offered a pension buyout should do themselves a favor and contact me (Matt Skiba) with plans of setting an appointment. I have been licensed in the State of Michigan for 7 years and now also licensed in the State of Ohio. I can be reached directly at: 734-395-5425.
You may also have found the website: gmretirement.com will also take you to the home page of my dreaming of retirement website. Feel free to hover your mouse over the “Automotive” tab and then click on GM to view more detail on pension buyouts from GM. You may also view my “About Us” tab to learn more about how we offer seamless transitions which allow you to remain in control without the fear of running out of money or losing any money no matter what happens in the stock market. Call and schedule your appointment today.