GM to shut many US plants up to 9 weeks
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From: Aurora/Valparaiso
GM to shut many US plants up to 9 weeks
Two people briefed on the plan say General Motors Corp. will close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles.
The people did not know exactly when the shutdowns would occur, but both say they will include the normal two-week closure in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.
GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.
GM is living on $13.4 billion in government loans and faces a June 1 deadline to restructure or seek bankruptcy protection.
The people did not know exactly when the shutdowns would occur, but both say they will include the normal two-week closure in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.
GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.
GM is living on $13.4 billion in government loans and faces a June 1 deadline to restructure or seek bankruptcy protection.
http://news.yahoo.com/s/ap/us_gm_factories
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Looking at the timing being after June 1st, it really shows GM is planning for BK. If they close the plants after filing they don't have to pay laid off workers under the union contracts. If they did it now they would have to.
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They do get paid.
Per the news reports, they get unemployment plus a supplement that apparently bring them back to most of their normal pay level (and I would be surprised if they didn't also retain their company benefits as well).
No one want's a pay decrease, even a modest one, but the workers are not going to be too bad off because of this. Unless the news outlets have the story wrong.
Per the news reports, they get unemployment plus a supplement that apparently bring them back to most of their normal pay level (and I would be surprised if they didn't also retain their company benefits as well).
No one want's a pay decrease, even a modest one, but the workers are not going to be too bad off because of this. Unless the news outlets have the story wrong.
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That may be true if all that has been decided and agreed on behind closed doors before a filing but as a matter of law, once they file the bankruptcy judge will decided.
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