Top > Business > 2006 > March > 2006-03-25

GM Offering Buyouts to Workers

General Motors Corp. and auto parts supplier Delphi Corp. announced deals with the United Auto Workers this week that would help the struggling companies cut labor costs by offering early-retirement buyouts to 113,000 U.S. hourly workers.

The deal comes at a critical time for GM, the world`s largest automaker, which has reported $10.6 billion in total losses in 2005, and is saddled with labor agreements. The budget trimming plan is equally important to Delphi, the largest U.S. auto parts supplier, which filed for Chapter 11 bankruptcy protection in October.

According to news reports, about 100,000 GM workers will be eligible for payouts of between $35,000 and $140,000 depending on their years of service. GM says the plan will move it toward its goal of cutting 30,000 hourly jobs by 2008, adding that salaried workers won`t be eligible for the early-retirement offers.