29 May 2008 | Source: just-auto.com editorial team

More worker layoffs and buyouts appear inevitable as GM restructures yet again to match falling demand for some vehicle types

General Motors' top managers are working on additional restructuring measures to deal with a declining US new vehicle market and an accelerated shift from trucks to more fuel efficient vehicles, a person familiar with the plan told The Associated Press (AP) last night (28 May).

But the unnamed source would not give details of plans under discussion by chairman and chief executive officer Rick Wagoner and his top managers.

AP, citing the Wall Street Journal (WSJ), said the restructuring, which follows thousands of job cuts over the past three years mainly through buyout and early retirement offers, will be announced at the company's annual meeting in Wilmington, Delaware, on 3 June.

GM spokesman Tom Wilkinson declined to comment to the news agency.

However, the Associated Press speculated the new steps would involve further cost cuts including reduced truck and sport utility vehicle production and faster launches of more car and crossover models, similar to what Ford announced last week.

GM this week said it would speed up the elimination of one shift each at its Flint and Pontiac pickup truck factories, the report noted.

Ford on Wednesday confirmed that it is looking at involuntary layoffs of salaried employees, perhaps costing as many as 2,000 workers their jobs, AP noted, adding that the WSJ had quoted GM director George Fisher as saying that the company must take further steps.

"Obviously these times dictate more actions, and Rick and the team are about doing that," Fisher told the newspaper. "Rick and the team are looking at what things can be done and will be done."

 

That sucks. Kind of makes me glad I didn't get a job with them. As much as I would love to work for GM my wife would have killed me if I moved her to Michigan and then got layed off a year or two later.

 

Sad thing is the Union guys are "protected" while they can layoff good engineers on a whim. Seems kind of backwards to me.

 

^ x2..

 

In case you haven't noticed, the hourly workers have seen their numbers decline far, far more rapidly than white-collar workers over the past several years.

 

Not exactly how its happening. union guys are losing numbers pretty rapidly. although being bought out and layed off are two very different things.

 

I would be curious to see the numbers as a percentage of total i.e. the percentage decline of hourly versus white colar. I bet its pretty close.

 

This is certainly a last resort. The blue collar UAW force has been the ones taking all the job cuts over the past several years as the car companies tried to cut workforce but can't spare the white collar losses. Now it's even hit that sector.
Despite how dire it sounds there are plenty of jobs in the white collar ranks than can be cut w/o really affecting things too drasticly.

 

When they cut the union guys it would be based on seniority. That doesn't take out good workers?

When they take out the white collar guys they make a list of the 25 to go. Do you think they put the best guys on that list?

 

Rumor has it that GM is really getting concerned about continued negative cash flow.

 

I got out as a salary Engineer. Designed and installed all their high tech robotic - YAG laser braze equipment @ LGR (CTS 2008 roof to body side braze/ rear deck lid/ more). It was very rough working @ gm. Working doubles and holidays with no pay and spoon feeding tech info to uaw people that did not understand how to run/ maintain the equipment. Try driving home 70 miles with no sleep! No pay raise for over 3 years. Uaw trades were making double the pay I was. Then, you got all the elete mgt rules and games the socialist union plays on the floor. The travel... months @ a time with no home trips. Yes, I wanted to beat Toyota, but mgt would not let me. But, I do have a monster FI 97 CamaroSS M6. All modified by me. So... I guess am a real car guy even though I could not connect with 95% of the mgt. Very political @ gm and alot of games being played. Hey, their loss. Very sad what has happened to the US auto industry. Still, I could never buy a German or Aisian brand car.

 

Can you elaborate at all on that? Just curious to hear.