GM buyout offers falls 7,500 workers short of its target

General Motors

As many as 6000 hourly blue-collar workers at General Motors have accepted buyouts and early retirement offers and left the firm.

Nevertheless, Detroit-based GM may have to hack more hourly jobs as its buyouts and early retirement offers fell around 7,500 workers short of its target.

It should be noted here that GM has planned to trim down the number of its workers to 40,500 by the end of 2009 from about 54,000. After the recent cut GM has around
48,000 workers.

Hourly workers who accepted buyouts and early retirement offers are receiving cash payments of $20,000 to $115,000 plus $25,000 vehicle vouchers.

On Monday U. S. Bankruptcy Court's judge Robert Gerber approved GM's request to end ties with 33 dealerships, paving its way to close around 2,000 of its dealerships by 2010.

GM is passing through its fourth round of buyouts that started in 2006. The company got rid of 18,000 workers in 2008 and 34,000 workers in 2006.

Speaking on the issue, Diana Tremblay, the vice-president of labor relations, said, "One of the very tough, but necessary, actions to position the company for long-term viability and success is to reduce our total U. S. work force."

GM, which has surfaced from bankruptcy on July 10, has lost around $80 bn in the last four years.