|
|
. . 
|
||||||||
|
June 28, 2006
© 1998 - 2006 Copyright & |
The accelerated attrition program was announced in March and offered to 109,000 UAW-represented hourly employees and 3,800 IUE-CWA-represented employees at GM's manufacturing operations in the United States . The program ended at midnight June 23. Employees who signed up that day have seven days after signing up (no later than midnight June 30) to opt out of their retirement or buyout. Based on preliminary numbers, approximately 4,600 of the participating employees accepted buyouts and approximately 30,400 chose to retire. It is expected that most will retire or leave the company by the end of the year. These numbers do not include Delphi employees who are participating in similar attrition programs. In addition, the JOBS Bank will be substantially reduced as employees from the Bank retire, take a buy-out or fill openings created by the attrition program. These moves will be coordinated by GM and the UAW, working through national and local agreements. As a result of the success of the accelerated attrition program, GM is again increasing its targeted reduction in structural costs in North America to at least $8 billion from $7 billion on an annual running rate basis by the end of 2006. Approximately $5 billion in savings is expected to be realized in 2006. The additional cost reduction of at least $1 billion, largely cash savings, will bring expected total annual cash savings from structural cost reductions to $5 billion. Structural costs, such as the cost of unionized employees, are those operating costs that do not vary with production and include all costs other than material, freight, and policy and warranty costs. GM expects to take a netafter-tax charge currently estimated in the range of $3.8 billion related to the attrition program, primarily for payments to employees and for the effect of the re-measurement of both GM's U.S. pension liabilities and other post-employment benefits (OPEB) liabilities. This charge includes a revision of the accrual taken in the fourth quarter of 2005 for the North American plant capacity actions. The amount of this charge is subject to further review based on such factors as the demographics of the employees accepting the retirement offer. Most of the above-noted charge will be included in second-quarter financial results. GM will provide final estimates and additional financial details when it releases second quarter results next month. The attrition program also represents another step in reaching a consensual agreement with Delphi , the UAW and the IUE-CWA in connection with the Delphi restructuring. Wagoner recognized UAW leadership's role in the success of this attrition program. "We appreciate the UAW's steady support in working with us as we make the necessary moves to restructure GM North America for long-term success," he said. Wagoner also thanked the IUE-CWA and GM's other unions for their support. He noted: "By working together with our unions, we can come to solutions to challenging issues that are fair to both our employees and other important constituents." He also recognized GM employees' role in the turnaround efforts. Detailed plans are in place to ensure a smooth transition in GM manufacturing plants. Employees who chose to leave the company will retire or leave no later than Jan. 1, 2007 . GM will use temporary employees as necessary while permanent replacements are put in place . All temporary, relocated, and Delphi flow-back workers will receive extensive training to maintain GM's safety leadership and strong quality performance. (June 26, 2006)
|
|||||||