Buyouts a consideration in light of job loss
JANESVILLE — The question remains open on how General Motors’ offer to trim employment through buyouts will affect who will keep their jobs at GM’s truck plant in Janesville.
The automaker announced Monday that it will end the second shift at the Janesville factory and eliminate some 750 jobs.
The plant makes full-size sport-utility vehicles for Chevrolet and GMC on two shifts with about 2,840 hourly and salaried workers.
Employees have until May 22 to decide on buyout, retirement and early retirement offers, which vary depending on workers’ years of service with GM.
As of Monday, more than 200 people had signed up for early outs from the plant, sources have told The Janesville Gazette.
How many people take the offers and the years of seniority they will take with them from the local plant will determine the years of seniority needed to keep a job at the scaled-back factory.
The answers to those questions won’t be known until after the May 22 buyout deadline.
Employees whose jobs are eliminated will be placed on indefinite layoff and be eligible for regular state unemployment compensation and the supplemental unemployment benefits negotiated between GM and the United Auto Workers, GM spokesman Chris Lee said Monday afternoon.
In addition, they can apply for transfers to open jobs within the corporation, Lee added.
News of the second shift’s elimination is a signal that all employees should consider buyouts and examine their personal and professional situations, said John Berkley, a former GM worker and now a financial adviser with SII Investments.
“You cannot underestimate the seriousness of what’s going on and the decisions they have to make,” Berkley said.
Noting that at its high point the Janesville GM plant employed more than 7,000 people, Berkley said: “They’ve already closed two-thirds of that and now are getting rid of half of the remaining third.
“The trend in the industry is not positive, but in Janesville, it’s particularly not positive because of the age of the plant and its product line.”
The Janesville plant is GM’s oldest assembly facility. It makes GM’s most profitable—but also least fuel-efficient—vehicles.
Berkley noted that each employee has a different situation and different concerns.
The most basic question workers have to ask themselves, Berkley said, is: “Do I have enough confidence to leave General Motors and go out and have at it? That’s a tough, tough decision.”
Workers thinking about taking early retirement or a buyout should weigh several factors, he said, listing:
-- Would leaving GM be retirement or a transition to another career?
-- How much have they saved? How much income do they need to preserve their lifestyles?
-- Are they adaptable? Do they think they can tackle new circumstances?
-- Can they move without too much disruption to their lives?
“Every single case is different,” Berkley said. “Everybody should look at all the variables and make a good business decision.”
Some people think GM announced the end of the second shift to prompt workers into buyouts, so the automaker can turn around and hire new workers at the lower “second-tier” wages negotiated with the UAW in the last contract.
“Second-tier” workers are employed at jobs defined as “non-core” to the assembly of vehicles, GM spokesman Dan Flores explained Monday.
Only non-core workers are compensated with second-tier wages—$14 to $16 an hour—and second-tier benefits, Flores said. Core assembly workers will continue to receive traditional, pre-contract compensation from GM, about $28 an hour and full benefits.
A non-core job, for example, is material handling, Flores said, so the worker actually affixing a bumper to a Chevy Suburban would be a core worker, while the worker who delivered that bumper to the assembly line would be a non-core material handler.
Also defined as non-core work are some pre-assembly jobs—such as putting together doors and instrument panels that other workers will install in new vehicles.
Read more in our special section on the GM cutbacks.
May 3, 2008 at 11:23 a.m.
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The Baxtor Company formly SSI laid most of the people off last year in plans to head to SoCal. The new SSI has nothing to do with autos, and employes very few people making pressure switches for boats, and refrigeration trailers.So GM will not effect these $6 jobs.
GM needs to make a formal statement that they are closing. That is what the workers should ask for is the facts.
May 3, 2008 at 5:44 a.m.
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Jviers77 McDs and Burger King are still better than $0.00/HR people keep looking down at those jobs and if you work there for A long time you can actually make more than working at GM in the end! As far as Gamblerone you say this buyout wont cost us and I Quote "It won't cost you A stinking penny" So you think GM has A Multi-Million dollar fund set aside to just write all of this off? Come on people the writing is, and has been on the wall for years. GM keeps making all these deals with FORMER employees and its slowly and surely bankrupting the company!!!!!! Yet how many of those FORMERLY EMPLOYED GM WORKERS would be willing to take A cut to see them survive, and be able to stay in bussiness? BIG RED TURD ALERT!!!!!!!!!!! IF GM goes under and goes bankrupt........ NOBODY WILL GET A DIME EVER AGAIN! IT DON'T MATTER WHATS IN YOU'R CONTRACT, IF THEY CLOSE AND FILE YOU ARE SCREWED!!!!!! At some point if you care about this plant and our community maybe some cuts are in order, I ask this to the former GM employees....... Please lets stop the train of thinking thats been there for years "SCREW THEM WHAT ABOUT ME"!!!!! Well at some point that turns into screw you we are now gone...... Now who won?
May 3, 2008 at 5:40 a.m.
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Jviers77 McDs and Burger King are still better than $0.00/HR people keep looking down at those jobs and if you work there for A long time you can actually make more than working at GM in the end! As far as Gamblerone you say this buyout wont cost us and I Quote "It won't cost you A stinking penny" So you think GM has A Multi-Million dollar fund set aside to just write all of this off? Come on people the writing is, and has been on the wall for years. GM keeps making all these deals with FORMER employees and its slowly and surely bankrupting the company!!!!!! Yet how many of those FORMERLY EMPLOYED GM WORKERS would be willing to take A cut to see them survive, and be able to stay in bussiness? BIG RED TURD ALERT!!!!!!!!!!! IF GM goes under and goes bankrupt........ NOBODY WILL GET A DIME EVER AGAIN! IT DON'T MATTER WHATS IN YOU'R CONTRACT, IF THEY CLOSE AND FILE YOU ARE SCREWED!!!!!! At some point if you care about this plant and our community maybe some cuts are in order, I ask this to the former GM employees........
May 2, 2008 at 12:37 a.m.
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An Jackson id like to point out that if Gm goes we lose LSI SSI an Lear an they provide alot of jos to the area.I hope the layoofs dont last long an i am confident in Janesville Workforce that they will come through this ok.Because we ddo have he best workers around.AN workers in Janesville are not lazy an i might point out some do have 2 jobs.Dosent sound like people here are lazy like you suggest.
May 1, 2008 at 2:01 p.m.
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Jackson, every blog you post is anti GM. This butout is not costing you a stinkng penny. Sounds like you got snubbed from getting a job down there at one time and now it's just bash, bash, bash. You tell me how this is coming out of your tax dollars. Get your facts straight.
Apr 30, 2008 at 11:10 a.m.
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How are the buyouts paid for by our tax dollar? Do you realize what's going to happen to Janesville if GM completely shuts down?
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Those being laid off or taking buyouts are going to have a hard time finding work because there isn't any work to be had. Sure, they could go work at McD's or Burger King, but that won't support a family who is living currently on a $28/hr paycheck. The new Menard's is hiring, so that might get some of them $10-$15/hr, but that's it. It's fine if you're single and don't have kids, but most of these folks have families. This buyout/layoff is horrible news for the local economy and just a sign of things to come. I hope those who support this cutback aren't too attached to the mall and all those nice car dealerships we have.
Apr 30, 2008 at 10:55 a.m.
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No more buyouts!! The Janesville GM workers have had a buy out for the last 20 years paid for by our tax dollars.Time to cut the cord! I support this abortion.
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