GM Hammers White Collar Workers Again...

[Analog]

DETROIT-- General Motors Corp. is suspending contributions to its 401(k) savings plan for salaried employees and paring back severance benefits as it prepares for more white-collar job cuts in the coming year.

The changes in the white-collar benefits plans were spelled out in an information packet distributed Wednesday to GM's 36,000 U.S. salaried employees, a copy of which was obtained by The Detroit News.

The cutbacks are the latest efforts by the struggling automaker to rein in costs and another sign that GM can no longer afford the gold-standard benefits its employees have enjoyed for decades.

According to the documents distributed to employees Wednesday, GM will stop contributing 20 cents for each $1 that employees invest in the company's "Savings-Stock Purchase Program" up to 6 percent of an employee's base salary. The changes take effect Jan. 1 and come in addition to GM's decision in April to reduce its 401(k) match from 50 cents on the dollar to 20 cents.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20051215/AUTO01/512150357

 

[Wahsapa]

so do other car makers not treat their workers as good as GM?

 

[Ryan]

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

I think that Honda and Toyota most certainly treat their workers well - they just don't GROSSLY overpay them for the position they're in like GM.

 

[Stuxnet]

It's not that GM is "hammering" their workers... they're simply trying to keep their doors open.

 

[rmrf]

not all companies contribute to 401K plans. not that it makes much sense to have a 401K if their not going to contribute, but still.

 

[Fingolfin269]

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

Most of the Japanese corporations treat their employees as well as GM. But really GM's problem is not caused by its current employees. One thing the American companies have to worry about to a much greater degree than the Japanese is the rapidly growing amount of retired workers and those are costs you can't cut... legally anyway.

 

[iamwiz82]

Originally posted by: Ryan

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

I think that Honda and Toyota most certainly treat their workers well - they just don't GROSSLY overpay them for the position they're in like GM.

Actually salaries are very comparable, it's just that Toyota and Honda and getting efficiency out of those workers.

 

[Syrch]

unfortunetly they are doing there best to keep up with overseas competitors...they are playing catch up and the employees right now are the ones to suffer.

 

[moshquerade]

what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

 

[Cattlegod]

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

Ford has been without matching for about a year now. - Although, Ford is in a similar boat as GM.

 

[Cattlegod]

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

What do you do?

 

[moshquerade]

Originally posted by: Cattlegod

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

What do you do?

i don't work for a big company, if you wanna go there, but i work for a very profitable entity.

 

[Cattlegod]

Originally posted by: moshquerade

Originally posted by: Cattlegod

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

What do you do?

i don't work for a big company, if you wanna go there, but i work for a very profitable entity.

i mean like are you an engineer or an accountant or what? Also, what part of the country?

 

[moshquerade]

Originally posted by: Cattlegod

Originally posted by: moshquerade

Originally posted by: Cattlegod

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

What do you do?

i don't work for a big company, if you wanna go there, but i work for a very profitable entity.

i mean like are you an engineer or an accountant or what? Also, what part of the country?

i am licensed to work the medical/dental field in NY state.

 

[abc]

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

Yep. They got union protection and job security for ages, just clock in, do your thing, clock out. Many of us in private industry, small companies... you worry about being acquired, bought out, or if business downturns, you worry about your job.

I'm not taking about workers for small companies, family businesses with a 50yr old nostalgic history where their product cannot be copied. These people got a lock.

 

When the company you are working for is losing billions of dollars, cut backs are to be expected. Time for the workers to leave their little bubble of perfection and join the rest of the country.
Tough sh!t.

 

[DarkKnight69]

My dad works for GM as non-union parts manager. He says the Auto workers union is complete bullshit. Guys getting paid 35-40 dolars per hour with full benefits to do 5 hours of work in 8 hours. And he said it is near impossible to get the worked fired for 'slacking' because then they will pull discrimination or some bullshit like thaT!!!

 

[Cattlegod]

Originally posted by: abc

Originally posted by: moshquerade
what the hell... my employer doesn't match 401K contributions at all nor does he contribute to my health insurance plan.

GM workers have been getting some great perks that most of us can only dream about. they should join the reality crowd especially since their company is in such financial straits.

Yep. They got union protection and job security for ages, just clock in, do your thing, clock out. Many of us in private industry, small companies... you worry about being acquired, bought out, or if business downturns, you worry about your job.

I'm not taking about workers for small companies, family businesses with a 50yr old nostalgic history where their product cannot be copied. These people got a lock.

white collar means engineers etc, 99% of which are not in the UAW

 

[RU482]

here's a snipet from a recent interview with Rick Wagoner (head honcho at GM)

Fundamental challenges

So what are the fundamental challenges facing American manufacturing? One is the spiraling cost of health care in the United States. Last year, GM spent $5.2 billion on health care for its U.S. employees, retirees and dependents - a staggering $1,525 for every car and truck we produced. And the figure is going up again this year. Foreign automakers have just a fraction of these costs because they have few, if any, U.S. retirees, and, in their home countries, their governments fund a much greater portion of employee and retiree health care costs.

Some argue that we have no one but ourselves to blame for our disproportionately high health care "legacy costs." That kind of observation reminds me of the saying about no good deed going unpunished. That argument, while appealing to some, ignores the fact that American automakers and other traditional manufacturing companies created a social contract with government and labor that raised America's standard of living and provided much of the economic growth of the 20th century. American manufacturers were once held up as good corporate citizens for providing these benefits. Today, we are maligned for our poor judgment in "giving away" such benefits 40 years ago.

Another factor beyond our control is lawsuit abuse. Litigation now costs the U.S. economy more than $245 billion a year, or more than $845 per person. That's more than 2 percent of our gross domestic product. No other country has costs anywhere near this level. And the perverse thing is that, in many cases, the majority of courtroom settlements go to the lawyers and other litigation costs, not to the injured parties.

 

[Albis]

gotta do what it takes to stay in business

 

[Fritzo]

Hey, if you don't have the money to pay for it, how are you going to keep it going? Times are tough for them, so they have to tighten their belts.

 

[RU482]

and another important thing to know...

Another major concern is unfair trading practices, especially Japan's long-term initiatives to artificially weaken the yen. A leading Japanese automaker reports that for each movement of one yen against the dollar, it gains ¥20 billion in additional profitability - or nearly $170 million at today's exchange rate. No wonder Japanese automakers have noted their recent record profits were aided by exchange rates. And no wonder the U.S. trade-balance deficit continues to grow by leaps and bounds.

 

[Ktulu]

they're just trying to trim the fat, there' no way around it.

 

[spidey07]

Originally posted by: Ryan

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

I think that Honda and Toyota most certainly treat their workers well - they just don't GROSSLY overpay them for the position they're in like GM.

you'd be surprised. Pay scales are comparable.

 

[Chadder007]

Originally posted by: spidey07

Originally posted by: Ryan

Originally posted by: Wahsapa
so do other car makers not treat their workers as good as GM?

I think that Honda and Toyota most certainly treat their workers well - they just don't GROSSLY overpay them for the position they're in like GM.

you'd be surprised. Pay scales are comparable.

Yep, if GM would make a car that they could sell for more and in volume they would do fine. Chrysler is doing fine with the UAW and other companies over in Europe pay their employees as much with benifits and they are having no problems at all. Its just that everyone else has a product that more people will pay a higher premium for to cover the costs.