The bulk of savings from the new, four-year contract won't kick in until 2010. That's when GM expects a key piece of the deal -- a fund that allows GM to pay a reduced rate to turn over $50 billion in retiree health care costs to the union -- will be implemented.
22 January 2008
GM offers buyout; new workers will get less
The Detroit News reported Friday that GM is offering an early retirement package to about two-thirds of its work force and suggesting production cut-backs and plant closures. That's 46,000 blue-collar workers, on top of 34,000 since 2006. It would open positions for new employees who will receive lower wages and reduced health benefits.